What are the types of partnership (Sharika)?
General Chapter
Al-Mughni
Book of Partnership
Primary text
Partnership is defined as the joining in entitlement or disposition. It is established by the Quran, Sunnah, and scholarly consensus (Ijma'). Evidences from the Quran include the verse stating partners share in a third (Quran 4:12) and the verse concerning associates (Khulṭā') who might transgress against one another (Quran 38:24). From the Sunnah, the Prophet (peace be upon him) adjudicated a case involving partners who dealt in cash and deferred payment, validating the cash part and nullifying the deferred part. Furthermore, the Prophet (peace be upon him) stated that Allah is the third partner unless one cheats the other, upon which Allah withdraws. Consensus among Muslims affirms the permissibility of partnership in general.
Supporting text
Partnerships are categorized into two primary types: Partnership of Possessions ('Sharikat Amlāk') and Partnership of Contracts ('Sharikat 'Uqūd'). The discussion proceeds concerning the Partnership of Contracts, which comprises five types: 'Anān, 'Abdān, Wujūh, Muḍārabah, and Mufāwaḍah.