Transactions & Dealings >> Business

Question # : 20438


In a business there are 2 partners,One partner who invest money and the second partner finds business(work) only,they share profit as follows partner who invest 75% and partner who finds work 25%,if there is a loss in the work does the partner who only finds work has to bear the loss in above mentioned ratio or he is partner in profit only? Nothing was discussed to share in loss.

Answer : 20438

Published on: Mar 29, 2010

بسم الله الرحمن الرحيم

(Fatwa: 530/L=175/tl=1431)


The abovementioned condition is known as "Muzarabah" (speculation), in which in case of loss, at first the loss is remunerated from mutual profit, after that from capital amount. The partner would not share the loss.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

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