Is it permissible to enter into a Mudarabah contract between two parties, where one provides effort and capital, and the other provides effort, on condition that the second party's share is based on sales volume and not on profit? And is it permissible for the second party to exclude certain expenses from the profits when distributing the profit share, due to the difficulty of calculating the net profit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible for two individuals to share in their efforts while the capital comes from one of them, according to the Hanbali school of thought. The profit is divided according to their agreement. It is stipulated that the percentage of profit must be known and attributed to the effort, not to the capital, and that profit is only distributed after the safety of the capital is ensured.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/189101
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- Ftawy
- Original fatwa ID
- 189101
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy