Each partner is entitled to buy and sell, to receive and to pay, to make claims and litigate, and to do whatever is to the partnership’s advantage.
Section
Second: muḍāraba. It is when a person entrusts¹ his capital to another so that he may trade with it, the profit being divided between them according to whatever ratio they agree upon.
Its conditions are three:
- The capital must consist of coined gold or silver.
- The amount must be specified and known; taking possession of it in the sitting or even formal acceptance is not required.
- They must stipulate² for the working partner a definite³ share of the profit.
If any of these conditions is lacking, the contract is invalid; the worker is then entitled to a wage comparable⁴ to that of his peers, while every loss or gain reverts to the owner. The worker may not purchase a person whose acquisition would result in that person’s automatic emancipation for the capital owner; if he does so, the person is set free and the worker must reimburse the price, even if he was unaware.
The worker is not entitled to maintenance unless this is stipulated. If maintenance is stipulated in general terms and⁵ they later disagree, he is entitled—according to custom—to ordinary food and clothing appropriate to someone in his position.