What is the ruling if the capital provider authorizes the agent to act according to his own judgment regarding the disposition of the capital?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the capital provider authorizes the agent saying, 'Act according to your opinion,' or 'Act according to what Allah shows you,' it is permissible for the agent to enter into a mudaraba contract with a third party using this authorization. This is permissible because the principal may deem it appropriate to entrust the capital to someone more knowledgeable in trade.
Supporting text
There is a potential view that this authorization does not permit entering into a secondary mudaraba. This dissenting view suggests that the phrase 'Act according to your opinion' pertains only to the manner of the primary mudaraba, such as in conducting buying, selling, and trade methods, and does not extend permission to delegate the capital entirely to another partner.