He may not enter into a second muḍāraba with another person’s capital if doing so would harm the first investor¹ and the latter has not consented. Should he nevertheless do so, he must return that investor’s share of the partnership, and no division of assets is permitted while the contract is still in force unless both parties agree.
If the principal, or part of it, is lost after trading has begun, or the venture incurs a loss, the deficiency must be made good out of the profit before it is distributed or converted into cash.
Section
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Shirkah al-Wujūh (credit-based partnership): two people purchase goods on credit in both their names, relying on their joint reputation. The property so acquired is shared between them, each partner acting as the other’s agent and guarantor² for the price. Ownership is apportioned as they stipulate; loss is borne in proportion to their respective shares; and profit is divided according to whatever ratio they agree upon³.
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Shirkah al-Abdān (labour partnership): the partners pool whatever they earn through their bodily effort. Any job accepted by either partner becomes binding upon both of them. The arrangement is valid for gathering fodder, collecting firewood, and all other lawful activities. If one partner falls ill, the earnings remain shared; and if the healthy partner demands that the sick one provide a substitute in his place, he must comply.
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Shirkah al-Mufāwaḍa (comprehensive partnership): “each partner authorises the other to conduct every financial and physical transaction covered by the various types of partnership; profit is divided as they stipulate, and loss is borne in proportion to the capital.” If they include within it an unusually rare gain or liability⁴,