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The question

Is it permissible to deal with a person who participates in profit and loss with one-third of the profit, but does not bear the expenses of the shop, the worker, the telephone, electricity, and internet?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The money paid for investment with a share of the profit is called (commenda partnership). It is based on specifying a common percentage of the profit for both the capital provider and the Mudarib (working partner), without stipulating a fixed amount. The capital provider also does not guarantee the principal, because it is a partnership. If a loss occurs, the capital provider alone bears it, while the worker loses the effort expended. Necessary expenses for the work are to be covered by the capital, and stipulating that the worker bears them invalidates the Mudarabah. Based on this, it is not permissible to deal in this manner unless the money is invested in a way that does not require these expenses.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
73683
Imported
Translation status
Source text, unreviewed
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