How is loss (*Wadiah*) distributed in a partnership based on capital?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 3 · Bab 1

Open in Qurani

Primary text

The distribution of loss in a partnership based on capital is according to the amount of capital each partner contributed. If the capital amounts are equal, the loss is split equally between them. If the contributions were in thirds, the loss is distributed in thirds. There is no known disagreement among scholars on this matter, and this is the opinion held by Abu Hanifa, Al-Shafi'i, and others.