Is it permissible to enter into partnership using non-monetary goods ('urud) as capital?
General Chapter
Al-Mughni
Book of Partnership
Primary text
In the apparent ruling of the Madhhab, partnership using non-monetary goods is not permissible. Ahmad explicitly stated this, and it was related by Ibn al-Mundhir. Many scholars, including Ibn Sirin, Yahya ibn Abi Kathir, al-Thawri, al-Shafi'i, Ishaq, Abu Thawr, and the Companions of the Opinion (Ahl al-Ra'y), disallowed it. The objection is that partnership involving specific goods cannot be enforced upon dissolution because the capital must be returned at its equivalent value, and specific goods lack an equivalent value; their value fluctuates, potentially causing one partner to absorb all profit or capital, or leading to dispute. Furthermore, partnership cannot be based on the price of the goods, as the price is not realized at the time of the contract, or it becomes contingent upon a future sale.
Supporting text
There is a second narration from Ahmad that partnership and *mudarabah* (profit-sharing investment) are valid using goods, taking the value of the goods at the time of the contract as the capital. This view is adopted by Abu Bakr and Abu al-Khattab, and aligns with the opinion of Malik, Ibn Abi Laila, Tawus, al-Awza'i, and Hammad ibn Abi Sulayman. They argue that the purpose of partnership—managing both capitals for mutual profit—is achieved with goods just as with currency. Al-Shafi'i held that partnership is permissible if the goods are fungibles (like grains or oils) because they have equivalents, but not permissible for non-fungibles.