Is the financier entitled to claim the full capital back after the expiry of the agreed-upon period in the investment contract, and is the partner's refusal to sell the invested asset before the end of the period considered negligence that necessitates him bearing part of the loss?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the agreement stipulates guaranteeing the capital in a (profit-sharing partnership), then the company is invalid. There is a disagreement among jurists regarding the distribution of profit and loss in this case. However, if there is no stipulation to guarantee the capital and the Mudarabah is valid, then the profit is divided between you according to the agreement, and the loss is borne by the capital owner. The Mudarib’s (agent’s) delay in selling is not considered negligence, and he is not obligated to return the capital until after the land is sold. It is permissible to suggest buying the land from him.
Summarized from the full answer at Ftawy · imported
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- Ftawy
- Original fatwa ID
- 16645
- Imported
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