Is it valid to stipulate that a Mudarib (speculator) receives a fixed profit amount (e.g., 1000 out of 2000 capital) in a Mudarabah contract?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The stipulation is invalid, and the Mudarabah contract itself is nullified. This applies if the profit division is fixed to a specific sum for each party, or if the profit is tied to a specific item, journey, or defined period (like a specific month or year). The reason for invalidity is that this condition violates the essence of partnership, as one party might exclusively profit from that specific allocated part while the other does not. We know of no disagreement regarding this ruling.