What is the ruling on a purchase made by the speculator on credit versus using the capital itself?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the speculator purchases on credit (in his personal capacity, *fi al-dhimmah*) and later settles the payment using the capital, the profit belongs to the capital owner. If the purchase was made directly using the capital itself, one narration from Ahmad states the transaction is void. The second narration holds that the transaction is suspended (*mawquf*) pending the owner's ratification; if ratified, it is valid, otherwise void. The first opinion is the established school (madhhab) of Ahmad.
Supporting text
Abu Bakr mentioned that the only narration stating the profit is given in charity is from Hanbal. Ahmad argued by citing the Hadith of 'Urwah al-Bariqi, where the Prophet, peace be upon him, accepted the return of the capital and the purchased sheep, but prayed for blessing in the transaction, implying the profit benefit returned to the owner when the terms were breached. Furthermore, profit is considered the growth of another's property without permission, thus belonging to the owner, analogous to someone who grows grain from usurped wheat.