Is a partnership (Qirad) contract valid if entered into during the illness of the owner of the capital?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The partnership contract is valid even if initiated during the capital owner's illness, because it is a contract seeking profit, resembling sale and purchase transactions. The worker (Mudarib) is entitled to the agreed-upon profit share. If the actual profit exceeds the stipulated share, the excess belongs to the worker, and it is accounted for from his one-third discretionary share (Thuluth) because this excess profit is not inherently due from the capital owner's wealth but resulted from the worker's effort in managing the capital. This profit accrual is considered to have occurred under the worker's ownership, unlike when a laborer benefits from an overpayment in wages, which is accounted for from the worker's one-third because the wages are derived directly from the owner's wealth.