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Is the friend who gave me money to invest in the shop entitled to claim his right after I was scammed by my partner and the shop was closed?

1 min readAlso available in العربية

Entrusting money to another for trade is called Mudarabah (commenda). The Mudarib (agent-investor) is permitted to mix the Mudarabah funds with his own money and his partner's money if the capital owner explicitly permits it or grants the Mudarib general authorization. The Mudarib does not guarantee the capital unless there is transgression (ta'addi) or negligence (tafrit). Examples of negligence include mixing Mudarabah funds with the Mudarib's own money or someone else's money without the capital owner's permission, or entering into a partnership with a third party using Mudarabah funds without permission. If the capital owner grants permission for such actions and the Mudarabah incurs a loss without negligence, he is not entitled to reclaim his money. However, if he did not grant permission, the Mudarib is liable.

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

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