Is it permissible to stipulate that the Mudarib receives half of the total profit from a capital sum?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 2 · Bab 1

Open in Qurani

Primary text

It is not permissible to stipulate that the Mudarib receives exactly half of the profit when the capital is given (e.g., giving 1000 and stating, 'You have half its profit'). This view is held by Al-Shafi'i. The rationale is that this condition restricts one party to the profit of only a portion of the capital, similar to saying, 'You have the profit of these 500 units.' This is distinguishable from half the profit because the capital could be physically divided, allowing the Mudarib to profit from half the principal while the owner profits from the other half, which is not the case when fixing the profit share itself.

Supporting text

Abu Hanifah and Abu Thur permit this stipulation, arguing that half of the profit is equivalent to the profit of half the capital, making the stipulation valid just as if it were expressed using the other phrasing.