What is the ruling on a partnership entered into by two individuals who agreed that one would pay an advance due to their ignorance of the costs, followed by the other paying a similar amount, but it became clear that the second partner did not pay his full share and used project funds for speculation in the stock market, incurring losses? And is it permissible to dissolve this partnership?
One of the conditions for a capital partnership (shirkah al-amwal) is that the capital must be cash and immediately available. Therefore, the mentioned partnership is invalid due to the absence of the second partner's capital at the time of the contract and the commencement of work. If the partnership is invalid, each partner retrieves their capital, and they divide the profit and loss according to the proportion of their capital. Neither partner is entitled to wages from the other. However, others have stated that the working partner is entitled to a fair wage (ajr al-mithl) for their work.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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