Is it permissible for me to contribute capital to an agricultural project where the partner provides his land and effort, then I take back the capital and two-thirds of the profit, with him receiving one-third, and in the case of a loss, I pay him a monthly wage?
This transaction is Islamically invalid due to the presence of gharar (excessive uncertainty) and jahalah (ignorance), as it is unclear whether the worker is a partner or an employee. To rectify the contract, the land can be leased for a known rent, and then given to him to cultivate in exchange for a percentage of the crop (muzara'ah), or both the land and the worker can be leased for a specified wage, with the produce belonging to the lessee (ijarah).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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