Is it permissible for a manager in a profit-sharing contract (Mudarabah) to enter into a second Mudarabah contract with another principal?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the first principal permits the manager to take a second Mudarabah, it is permissible. If the first principal does not permit it, it is permissible provided there is no harm caused to the first principal's capital. However, if taking the second contract causes harm to the first principal—such as the second capital being so large that it necessitates the manager neglecting the first venture, or the first capital being significant such that engaging in another venture interrupts his established dealings—then it is not permissible for the manager to do so.
Supporting text
The majority of jurists hold that it is permissible even if there is no apparent harm, arguing that since the manager does not possess the entirety of the profits from the first contract, he is not prohibited from entering another Mudarabah, similar to a jointly hired laborer (ajir mushtarak). If the manager acts contrary to the ruling where harm is present and earns a profit in the second contract, that profit must be returned to the first partnership. The manager's share of that returned profit is then combined with his share from the first contract's profit and divided between them, as the manager earned it through the benefit stipulated in the first contract.