Is the agent (*Amil*) obligated to collect a debt when the *Qirad* (profit-sharing contract) dissolves and the capital is owed as a debt?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

Primary text

When the *Qirad* contract is dissolved and the capital (*mal*) becomes a debt, the agent is obligated to collect that debt, regardless of whether a profit (*ribh*) materialized or not. This is the position held by Al-Shafi'i. The basis for this ruling is that the *Mudarabah* contract necessitates the return of the capital in its original form. Since debts do not function as ready currency (*nad*), the agent must liquidate the debt, similar to the case where profit has materialized or if the capital was in the form of commodities (*arud*). Furthermore, the agent is obligated to collect even if the collection amount covers only the capital, or if the debt amount is equal to or less than the expected profit, because the share of profit is only earned when it reaches both parties in a divisible form, which requires collection first.

Supporting text

Abu Hanifa holds that if a profit has materialized, the agent is obligated to collect the debt. However, if no profit has materialized, collection is not obligatory for the agent, because they have no incentive for the work done, making the situation analogous to that of a mere agent (*wakil*).