Validity of one partner purchasing an item using partnership funds for their own share.

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 1 · Bab 1

Open in Qurani

Primary text

If one partner purchases an item using partnership funds, the purchase is void regarding that partner's specific share because they already possess ownership of that portion. The validity concerning the co-partner's share is subject to two scholarly opinions, based on the principle of separating a transaction (tafriq al-safqah). A ruling where the entire transaction is valid is derived from the position that the owner of capital (Rabb al-Mal) is permitted to purchase from the Mudarabah funds for themselves.