Who is entitled to the profit generated from a void Mudharabah contract?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The entirety of the profit belongs to the owner of the capital (Rabb al-Mal). This is because the profit is the increment of his wealth, and the worker's right to a share was conditional upon the contract's validity. Since the Mudharabah is void, the condition is void, and the worker receives nothing based on the stipulation. However, the worker is due the customary wage (Ujr al-Mithl). This is the stated position of Ahmad and the madhhab of Al-Shafi'i.
Supporting text
Al-Sharif Abu Ja'far chose that the profit is shared between them according to their initial stipulation, based on a report from Ahmad concerning profit sharing in dealing with movable goods (Urood). Some opinions held that the matter reverts to the standard rate for a Qirad (profit-sharing contract), or that if no profit is made, the worker gets no wage. Another view suggests the worker receives the lesser of what was stipulated or the customary wage. A correct view holds that if the worker agreed to work without compensation (stipulating all profit to the owner), the worker receives nothing, as it is considered a voluntary act of service.