Back to search

Is the صيغة (wording/formula) of an agreement to give money to a person for the purpose of buying, raising, and selling livestock, with the profit divided such that one-third goes to the capital provider and two-thirds to the المضارب (agent/manager), lawful, given that the المضارب bears all expenses of the livestock and these expenses are not deducted from the profits? And is it permissible to agree that the expenses of the المضارب be calculated as a percentage of the capital, making him a partner in it, while he also benefits from the milk during the rearing period without it being counted as part of the profits?

1 min readAlso available in العربية

This transaction involves ghabn (fraud/deception due to significant imbalance) and jahalah (ambiguity/uncertainty). What the worker spends on the livestock is unknown, and profit may or may not be realized. Therefore, this partnership is not valid.

What the worker pays cannot be considered an expenditure from the capital due to the uncertainty of its amount, and because one of the conditions for a valid partnership is that the capital be a tangible asset present at the time of the contract or purchase.

Among the acceptable forms for a Mudarabah (profit-sharing) partnership is for the owner of the capital to provide his money to the worker to buy sheep and what they need in terms of feed or a shepherd's wage, and the worker does not bear the cost of that. The profit is then divided between them according to their agreement.

There is no harm in the Mudarib (worker) benefiting from the livestock's milk with the owner of the capital's consent.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy