Conditioning the loss on the capital owner in a profit-sharing partnership
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success. I gave my brother some money and then told him to work with it. The profit is to be split equally between us, and the loss is on me because he is my brother and I love him. Is that permissible for me?
Answer:
There is no problem if you did not condition the loss on the capital. If the capital is lost, or if the capital perishes, he is not liable to guarantee it to you. Yes.
He says: Honorable Shaykh, may Allah grant you success. I gave my brother some money and then told him to work with it. The profit is to be split equally between us, and the loss is on me because he is my brother and I love him. Is that permissible for me?
Answer:
There is no problem if you did not condition the loss on the capital. If the capital is lost, or if the capital perishes, he is not liable to guarantee it to you. Yes.
Source
شرح أخصر المختصرات في الفقه، فصل: وتصح الوكالة بكل قول يدل على إذن، وقبولها بكل قول أو فعل دال عليه — islamhouse.com (1:04:23)
The Arabic text is a machine transcription of the audio recording.