What is the condition for the validity of the working partner's share in Mudarabah?
General Chapter
Al-Mughni
Book of Partnership
Primary text
A condition for the validity of the Mudarabah contract is the explicit estimation of the working partner's share, because he acquires it through stipulation, and thus must be defined by that stipulation.
Supporting text
If the principal says, 'Take this money as Mudarabah,' without specifying any profit share for the working partner, the entire profit belongs to the principal, and the loss is his responsibility, while the working partner is entitled to a wage equivalent to his labor (Ujrat Mithli). Alternatively, some state the profit is split equally (half and half) if the principal said, 'The profit is between us.' However, the correct view is that since the working partner's entitlement is conditional and no condition was stated, the contract is invalid unless the principal says, 'The profit is between us,' which implies equality.