Is the disposition made by a partner in a void Mudharabah contract valid?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

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.