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The question

Is the managing partner entitled to claim compensation due to the non-fulfillment by the two partners of their financial obligations as agreed upon, which led to the project's halt, especially given that he expended significant effort and time and incurred debt to cover the project's expenses?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Disputes are resolved in Sharia courts. A mufti cannot issue an accurate ruling in such cases because he only hears from one party. In a valid Mudarabah contract, the Mudarib (the working partner) is not entitled to anything except his share of the profit after the capital is secure. If there is no profit or if there is a loss, the Mudarib loses his effort and does not bear the financial loss unless he was negligent or committed an تجاوز (transgression). He is not obligated to pay anything from his own money for the operating costs of the business; rather, these costs are covered by the capital. If he pays with the permission of the capital owner, he has the right to reclaim it. He also has the right to hire someone to perform tasks that are not ordinarily required of him, and that person's wages would be paid from the Mudarabah funds.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
193985
Imported
Translation status
Source text, unreviewed
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