Book of Partnership
Introduction
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Book of Partnership
This book deals with five kinds of partnership, all of which are permissible for anyone who is legally qualified to transact.

1. The ʿinān partnership: two or more people pool capital for trade, and the profit is divided between them according to whatever ratio they agree upon.

Its conditions are four:

1. The capital must consist of coined money—gold or silver—even if the two amounts are of different specie.
2. Each partner’s contribution must be known.
3. Both sums must be present; mixing them together or granting permission to transact is not a condition.
4. They must stipulate¹ for each partner a known share of the profit, whether that share equals, is less than, or exceeds his contribution.

Whenever any of these conditions is missing, the partnership is invalid; and once it is invalid, the profit is divided in proportion to the two capitals, not according to their stipulation, while each partner may recover from the other the wage² for half of his labor.

Every contract that carries no liability when valid carries no liability when invalid, except in cases of misconduct or³ negligence—such as partnership, muḍāraba, agency, deposit, pledge, and gift.