What is the ruling if the parties agree to split the profit equally (half-half) without explicitly stating it is a Mudarabah contract?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the profit is stipulated to be split equally between them without mentioning Mudarabah, the contract is valid and constitutes Ibdah (entrusting capital to trade without a profit-sharing stipulation mentioned, where the return is based on mutual agreement or custom).
Supporting text
If the parties stipulate the profit split equally but explicitly state the contract is Mudarabah, the contract is voided, based on subsequent principles to be detailed.