Distribution of profit earned in a second Mudarabah when the first principal was harmed and did not consent.
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the manager enters an unauthorized second Mudarabah that causes harm to the first principal, the share of the profit belonging to the second principal must be given to him, as the transgression of the manager does not nullify the right of the second principal. If the ruling dictates the second contract is void, all profit belongs to the second principal, and the manager receives the equivalent of his wage (ajr mithl). If the second contract is ruled valid, the second principal's share must be given to him according to the contract's terms.
Supporting text
It is argued that the first principal has no right to anything from the second principal's profit because the first principal has neither capital nor labor invested in the second venture. The transgression of the manager stemmed from neglecting the first capital, an act that should not necessitate compensation, similar to when a manager occupies himself with his own wealth, hires himself out, or abandons trade for leisure or study.