What is the ruling on two men agreeing to buy a car in installments, where one pays the down payment and the other operates it, and they divide the profits equally after paying off the installments? Does the operator become a partner in the asset by virtue of his work? What is the share of each if the car is involved in an accident two months after purchase?

If the transaction is a Mudarabah (profit-sharing) contract, where the owner of ten thousand paid the amount to be a partner in the car, and the second party works on it for half of the profit after paying the monthly installment, then the contract is invalid because each party stipulated for themselves a known portion (the monthly installment for the capital owner, and half of the car for the worker). The scholars have unanimously agreed on the invalidity of a Qirad (Mudarabah) contract if a known amount of money is stipulated for either party.

Based on this, the contract is invalid in both cases and must be rescinded. The loss of the car resulting from the accident is to be borne by its owner or by both partners, each according to their share. The worker is entitled to a fair wage (ujrat al-mithl) because he is not entitled to any share of the profit due to the invalidity of the condition. It is not permissible for the Mudarib (worker) to transform into a partner except through a new partnership contract, separate from the Mudarabah contract.