Is a partnership valid where two partners contribute capital based solely on their reputation or standing (*jah* or *wajh*) without contributing actual monetary capital?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 7 · Bab 1

Open in Qurani

Primary text

This partnership, known as *Shirkah al-Wujuh* (Partnership of Faces/Reputation), is valid. It involves two people agreeing that whatever they purchase using their credit and standing, and subsequently sell, shall be divided between them according to their stipulation (half, third, etc.). The validity stands even if they do not specify the time, the nature of the commodity, or the amount of money involved; stating only 'whatever I buy is between us' is sufficient.

Supporting text

Abu Hanifah required specification of time, capital, or commodity type. Malik and Al-Shafi'i required specification of agency conditions. The basis for validity is that they mutually agreed upon the act of purchasing and authorized each other in it, thus establishing a partnership in the resulting asset, similar to *Shirkah al-'Inan* (Partnership of Capital/Ownership) where agency conditions are not strictly required.