Importance of Prayer & Ruling of its Abandonment
Facing the Qiblah & Intention in the Prayer
Etiquettes of Walking to Prayer and its Description
Description of Prayer Continued
Description of Prayer Continued
Description of Prayer Continued
Pillars and Mandatory Acts of Prayer
Two Prostrations of Forgetfulness
Supererogatory (Voluntary) Prayers
Supererogatory (Voluntary) Prayers Continued
Times of Prohibition of (Supererogatory) Prayer
Congregational Prayers & Latecomers
Jumu'ah (Congregational Friday) Prayer
Introduction & Commercial and Selling
Selling of Primary & Secondary Commodities
Cancellation Options in Transactions
Cancellation Options Continued
Debt Transference & Guarantor-ship
Mortgaging & Security Deposits
Partnership & Companies Continued
Reviving Barren Lands & Per-Job Wage
Lost and Found Property & Foundlings
Prize Money & Deposits for Safekeeping
Book of Inheritance
3. Muḍârabah (profit-sharing):
One gives a sum of money for the other to trade with, and the two parties share its profit.
920
وَالْمُضَارَبَةُ:
وَهِيَ أَنْ يَدْفَعَ أَحَدُهُمَا إِلَى الآخَرِ مَالاً يتَّجِرُ فِيْهِ وَيَشْتَرِكَانِ فِيْ رِبْحِهِ.
4. Abdân (labor) partnership:
Partners share profits in legally permitted work, such as crafts, mowing, fishing, and the like, in which they all participate. ‘Abdullâh ibn Mas‘ood narrates, “‘Ammâr, Sa‘d, and I became partners in what we would receive [in terms of war captives, who might be kept as slaves or ransomed for money or goods] on the day of [the battle of] Badr. Sa‘d then brought two prisoners, but ‘Ammâr and I did not bring anything.” ,
921,922
وَالْمُضَارَبَةُ:
وَهِيَ أَنْ يَدْفَعَ أَحَدُهُمَا إِلَى الآخَرِ مَالاً يتَّجِرُ فِيْهِ وَيَشْتَرِكَانِ فِيْ رِبْحِهِ.
920. Muḍârabah is usually translated as ‘profit-sharing’ or ‘investment financing’. This is a company where the capital is provided by one of the partners, and the work is provided by another. They mutually agree on the division of profit. In the case of loss, the loss shall be deducted from the profit. If the profit does not cover the losses, the laborer loses only his or her work. The loss of capital is the sole responsibility of the one who provided it, as long as the laborer was not found to have committed transgression or been negligent. If more than one individual provided capital, the loss will be divided among them according to their shares of the capital. By agreement, the loss is divided on this basis in all partnerships.
Partnership can be timed, so they could agree to go into partnership for one year, after which the partnership is automatically dissolved. (al-Mughni) Either one of them may end it earlier if there is no harm to the other partner in doing so.
921. (D. ash-Shawkâni: interrupted chain; al-Albâni: W)
During those times it was common practice among many societies, both Muslim and non-Muslim, to consider war captives to be a sort of commodity rightfully taken by the victorious side. In the absence of large prison facilities, this was often their most practical way of dealing with war prisoners, who might still be hostile, and of sparing their lives. (See the appendix on slavery.)
922. Abdân (pl. of badan: body) is like ‘inân without contributing capital, so the parties contribute their work and share the income. If the two tailors in ‘inân above did not contribute any capital towards the venture, their partnership would be a company of labor (abdân). This type of partnership is permissible according to (A) + (+M);
(-S) forbids it;
[Rulings on Sharing Profit and Loss]
The profit in all these types of partnership is divided according to the terms agreed upon, 923 and the loss is sustained in proportion to the capital. 924 It is not permissible to specify a defined sum of money as the profit of one of them, or to appoint to him or her the profit of a particular thing.925 The ruling regarding watering for part of the crop and regarding sharecropping is the same. 926
The loss is first subtracted from the profit (before the profit is distributed).
[أحكام اقتسام الربح والخسارة]
وَالرِّبْحُ فِيْ جَمِيْعِ ذٰلِكَ عَلَى مَا شَرَطَاهُ وَالْوَضِيْعَةُ عَلَى قَدْرِ الْمَالِ، وَلاَ يَجُوْزُ أَنْ يُجْعَلَ لأَحَدِهِمَا دَرَاهِمُ مُعَيَّنَةٌ، وَلاَ رِبْحُ شَيْءٍ مُعَيَّنٍ. وَالْحُكْمُ فِي الْمُسَاقَاةِ وَالْمُزَارَعَةِ، كَذٰلِكَ.
وَتُجْبَرُ الْوَضِيْعَةُ مِنَ الرِّبْحِ.
A partner has no right to sell for a deferred payment, 927 or to take any of the profit without the permission of the other.
وَلَيْسَ لأَحَدِهِمَا الْبَيْعِ نَسِيْئَةً، ولا أَخذُ شَيءٍ مِنَ الرِّبحِ إلا بِإذنِ الآخَرِ.
(-H) allows it in crafts, but not in acquisition of free-to-the-public commodities, such as logging.
The hadith of Ibn Mas‘ood supports the position of (A) + (+M).
If they have two different crafts, Abu Ya‘lâ (Ḥanbali scholar, d. 458 AH/ 1066 CE in Baghdad), allowed their partnership (A). Abul-Khaṭṭâb (Ḥanbali scholar and a student of Abu Ya‘lâ, d. 510 AH/ 1116 CE in Baghdad) and (a) + (-M) forbade it.
923. In muḍârabah, all agree that the profit shall be divided according to the terms agreed upon. Each one is entitled to a certain percentage of the profit. They can divide it as they please: 50% and 50%, or 90% and 10%, etc. In other companies where there is a mixture between capital and work, this would still be the position of (A), but (-M, -S) require that the profit be in proportion to the capital provided.
924. If more than one partner contributed capital, the loss is first deducted from the profit before the laborer gets his or her share. If the profit does not cover the loss, then the rest will be deducted from the capital in proportion. If X contributed 100 and Y contributed 50, and the loss from the capital was 15, then X loses 10 and Y loses 5.
925. For example, X gets the profit from the trousers, and Y shares the rest or gets the profit from the shirts. This is to equitably distribute the profit and risk/liability among the partners
926. In other words, it is prohibited to designate a fixed part of the profit, like the fruits of particular trees or the crops of a particular piece of land. Again, this is to equitably distribute the profit and risk/liability among the partners.
927. This is the position of the majority, since selling for a deferred payment involves some risk. However, it would be permissible by consensus, upon their mutual agreement.
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