The manager's work and special cases

Islamic Fiqh > Companies and leases > Mudaraba (capital-management partnership) > The manager's work and special cases

Updated on 06 October 2026 at 10:50 PM

Mudaraba is the contract by which the owner of a capital entrusts it to a working partner who makes it grow in exchange for an agreed share of the profit. This second half of the chapter sets out what the working partner may or may not do with the funds: selling or buying on credit, transferring the debt, buying beyond the capital, traveling, incurring expenses, selling at a grave price gap, bartering, returning goods for defects, pledging, giving and lending, depositing, hiring services, mixing the capital, sub-letting it as a new mudaraba, or devoting it to farming and irrigation. The positions of the four schools are set out with their evidences and classical references.

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