Are acts of benevolence or gratuitous transactions permitted for a partner using partnership funds?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 5 · Bab 1

Open in Qurani

Primary text

A partner is prohibited from lending money (qard) or providing favorable pricing beyond customary trade benefit (muhaba), as these constitute gratuitous acts (tabarru'), and gratuitous actions are not permitted.