What is the ruling on stipulating a fixed sum of money as a share of profit in a partnership?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If one partner stipulates a fixed sum of money (*Dirham ma'lum*) as their share, or stipulates a fixed sum in addition to a share (e.g., half the profit plus ten dirhams), the partnership contract is void. Ibn al-Mundhir states there is a consensus among the scholars whose views we have recorded, including Malik, Al-Awza'i, Al-Shafi'i, Abu Thawr, and the proponents of *Ahl al-Ra'y* (the Companions of Abu Hanifa), that an unrestricted profit-sharing contract (*Qirad*) is void if either partner stipulates a fixed sum for themselves. This ruling applies even if the stipulation is phrased as 'half the profit minus ten dirhams' or 'half the profit plus ten dirhams'—the result is the same as stipulating a fixed sum alone.
Supporting text
The invalidity stems from two reasons: First, if a fixed sum is stipulated, it is possible that no profit exceeding that sum is made, causing the partner to take from the principal capital, or the profit may be large, causing detriment to the partner whose share was fixed. Second, the share of the working partner should be known by fractions because it cannot be known by exact measure; if the fraction is unknown, the contract is void, just as if the measure were unknown when it should be known. Furthermore, stipulating a fixed sum for the working partner might lead to negligence in seeking profit, as the benefit accrues to the other party, unlike when the partner has a direct fraction of the profit.