Is the disposition made by a partner in a void Mudharabah contract valid?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The disposition made by the partner (Al-'Amil) in a void Mudharabah contract is valid and binding. This is because the owner (Rabb al-Mal) had already authorized the action; when the contract becomes void, the authorization remains, allowing the partner to act like an agent (Wakil). This contrasts with a void purchase where the buyer's subsequent disposition is not valid because the buyer acts based on ownership, which is absent, whereas here the owner authorized disposition of his own property, and the void condition was not a reciprocal element of the authorization.