What is the ruling on a partner who manages a partnership concealing unreal accounts for the purpose of facilitation, and is an increase in money accepted in his debt for obstructing the interest of the other partner, or should the money be returned without an increase, and do both partners bear the debts of defaulting customers together, or only the managing partner?
Mudarabah: This is when an owner gives money to an agent to trade with it, and the profit is shared between them according to the agreed condition, while the loss is borne solely by the owner of the capital. The agent does not guarantee the principal because he is entrusted with it. If a condition is stipulated that he guarantees it, the contract becomes void, and he is entitled to a fair wage (ajr al-mithl). If the agent does not commit negligence or transgression, he does not guarantee the loss, and he must explain to the owner what happened to the money without concealment. As for outstanding debts, the agent is responsible for them, and he guarantees them if he incurred them without explicit or implicit permission from the owner of the money.
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- Original fatwa ID
- 101639
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