What compensation, if any, is due to the speculator who transgresses the terms of the agreement?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 4 · Bab 1

Open in Qurani

Primary text

There are two narrations concerning the speculator's right to compensation. The first, chosen by Abu Bakr, states he receives nothing because he entered into an agreement he was not authorized to make, similar to a usurper. The second narration grants him a wage (*ajr*) because the capital owner consented to the sale and accepted the resultant profit, thus necessitating compensation for the laborer's effort, as if the contract had been authorized.

Supporting text

Regarding the amount of the wage, there are two narrations. The first suggests he receives the stipulated wage (*musamma*), unless it exceeds the fair market wage (*ajr mithl*), as he performed a service deserving compensation but did not secure the stipulated amount. The second suggests he receives the lesser of the stipulated wage or the fair market wage. If the stipulated amount is less than the fair market wage, he takes the stipulated amount as agreed. If the fair market wage is less, he takes the fair market wage because he did not perform the service for which the higher rate was agreed upon. If the speculator intended the purchase for himself, he receives no wage under any narration. Al-Qadi and Abu Al-Khattab stated that if the purchase was made on credit and later paid for with capital, there is no wage in a single narration. If the purchase was made with the capital itself, there are two narrations regarding the wage.