What is the ruling regarding a Mudarib (managing partner) selling goods for less than the customary price (thaman al-mithl)?
General Chapter
Al-Mughni
Book of Partnership
Primary text
The Mudarib is treated as an agent (Wakil). Therefore, the Mudarib is prohibited from selling below the customary price or buying above it for items where slight over/under pricing is not customarily overlooked by people. If the Mudarib does so, a narration from Ahmad states the sale is valid, but the Mudarib must guarantee the difference (loss), as the harm is rectified by compensating for the loss.
Supporting text
The principle dictates that such a sale is void, which is the position of the Shafi'i school. This is because it is a sale unauthorized by the capital provider, resembling a sale by a non-agent. Following this view, if returning the sold item is impossible, the Mudarib guarantees the loss. If return is possible, the item must be returned, or its value must be paid if destroyed. The capital provider may pursue either the worker (Mudarib) or the buyer. If the capital provider takes the value from the buyer, the buyer may recover the price from the Mudarib. If the capital provider takes the value from the Mudarib, the Mudarib recovers that value from the buyer because the item's destruction occurred in the buyer's possession, and the buyer must be refunded the price.