Is a partnership valid when one partner provides all the capital and both partners contribute labor?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The partnership is valid when one party provides the capital (e.g., one thousand units) and both parties work on the venture, with the profit shared between them. Imam Ahmad, in the narration of Abu Al-Harith, affirmed this. This arrangement is classified as Mudarabah because the non-capital provider earns a stipulated share of the profit through their work on another's capital, which is the essence of Mudarabah.
Supporting text
Some scholars, including Abu Abdullah Ibn Hamid, Al-Qadi, Abu Al-Khattab, Malik, Al-Awza'i, Al-Shafi'i, the Companions of Al-Ra'y (Hanafi school), Abu Thawr, and Ibn Al-Mundhir, rule that this is invalid if the capital provider stipulated working alongside the agent. They argue that Mudarabah necessitates handing over the capital entirely to the working agent (Al-'Amil) so that the agent has control, which is negated if the owner retains control through stipulated labor. Al-Qadi interpreted Ahmad's and Al-Khiraqi's opinions as applying when the capital provider works without a prior stipulation.