Section

Either party may terminate the qirad. If one of them dies, loses sanity, or falls unconscious, the contract is annulled automatically. Once it is dissolved, the agent must collect any outstanding proceeds and, if the capital is tied up in merchandise, liquidate it into cash; another view excuses him from liquidating when no profit has yet appeared.

If the owner takes back part of the capital before any profit or loss becomes evident, the capital is reduced to what remains. If he retrieves it after profit has been realized, the amount withdrawn is deemed to comprise an undivided share of both profit and principal. Example: the capital is 100 and the profit 20; the owner withdraws 20. Because the profit equals one-sixth of the total 120, one-sixth of the sum withdrawn is profit. The agent receives his stipulated portion of that share, and the rest counts as principal.

If the owner withdraws funds after a loss has occurred, the loss is distributed proportionately between what is taken and what is left, and there is no duty to restore the withdrawn share should a profit emerge later. Example: the capital is 100 and the loss 20; the owner then recovers 20. One-quarter of that twenty represents the owner’s share of the loss, and the capital is reset to 75.

The agent’s word, backed by an oath, is accepted regarding whether profit was earned and its amount, whether a given purchase was made for the qirad rather than for himself, whether the owner prohibited a certain purchase, the exact amount of the capital, claims of destruction, and—according to the sounder view—claims that he has already returned the capital.

If they disagree over to whom the stipulated share belongs, they exchange oaths, and the agent is entitled to the customary wage for his labor.