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Is it permissible for a partner who contributed with his effort to a company to claim full ownership of the project and expel the other partner who contributed with his money, considering him merely an investor entitled to only a percentage of the profits?

1 min readAlso available in العربية

The aforementioned contract is a Mudarabah contract, where one party contributes capital and the other contributes effort and expertise. Mudarabah is a permissible contract that either party may terminate at will according to the Shafi'i and Hanbali schools of thought. However, the Hanafis and Malikis stipulate conditions and details for its termination. If the agent sells the existing goods and gives the financier their capital and their share of the profits, then there is no blame upon them, and they are not obliged to continue the partnership.

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

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