How is profit divided between two partners if one contributes capital and the other effort?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The scholars have agreed on the permissibility of Mudarabah (commenda partnership), which is: a permissible disposer giving a known amount of money to an intelligent, discerning, and mature person to trade with, in exchange for a known, undivided share of the profit for the latter. It is stipulated that both parties must be partners in the profit with an undivided percentage that they agree upon, and that the capital must not be guaranteed. The determination of the profit resulting from a person's work with another's money and their investment of it refers back to what they agree upon.
Summarized from the full answer at Ftawy · imported
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