What is the ruling if one party stipulates that the profit generated by their capital remains theirs, while the profit generated by the other's capital belongs to the other?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 3 · Bab 1

Open in Qurani

Primary text

If one stipulates, 'The profit of your wealth is for you, and the profit of my wealth is for me,' and the other agrees, this constitutes a mere entrustment (ibda') and nothing more. This ruling aligns with the opinion of Al-Shafi'i.

Supporting text

Malik holds that combining partnership with qirad (mudarabah) is impermissible, just as combining it with an ijarah (lease contract) is impermissible. The supporting evidence is that since neither contract was made conditional upon the other, combining them is permitted, similar to the case where the capital is distinguishable.