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Does the partner who finds work have to bear losses in the business, or is he a partner in profit only?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
In a business there are 2 partners,One partner who invest money and the second partner finds business(work) only,they share profit as follows partner who invest 75% and partner who finds work 25%,if there is a loss in the work does the partner who only finds work has to bear the loss in above mentioned ratio or he is partner in profit only? Nothing was discussed to share in loss.

Answer

(Fatwa: 530/L=175/tl=1431)

The abovementioned condition is known as “Muzarabah” (speculation), in which in case of loss, at first the loss is remunerated from mutual profit, after that from capital amount. The partner would not share the loss.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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