with the profit to be divided equally, and he is then authorised to place it with someone else under a muḍāraba but does so on the basis of a one-third share, the ruling is as follows.

• If the owner of the capital had told him, “Whatever provision Allah grants us is to be split between us half and half,” the owner takes one-half of the profit, the second agent one-third, and the first agent the remaining one-sixth.

• If the owner had said, “Whatever provision Allah grants you is to be split between us half and half,” the second agent still receives one-third, and the remainder is shared equally between the owner and the first agent.

• If the owner had said, “Whatever Allah provides, half of it is mine,” and the first agent then placed the capital with another on the basis of an equal half-share, the second agent takes one-half of the profit, the owner the other half, and the first agent receives nothing.

• If the first agent stipulates that the second agent is to receive two-thirds of the profit, the owner is nonetheless entitled to one-half, the second agent receives one-half, and the first agent must make up the missing one-sixth for the second agent out of his own funds.

If either the owner of the capital or the agent dies, the muḍāraba is annulled. It is likewise annulled if the owner apostasises from Islam and defects to enemy territory.

Should the owner dismiss the agent, and the latter is unaware of his dismissal and goes on to buy and sell, the transactions are valid. If he is aware of the dismissal and the capital is in the form of merchandise, he may sell it—the dismissal does not bar him from doing so—but he may not use the proceeds to purchase anything else. If he is dismissed while the principal consists of counted silver or gold coin, he may not transact with it at all.

If they separate while the partnership assets include receivables and the agent has already earned a profit, the judge compels him to collect the debts. If no profit has been realised, he is not obliged to collect them; instead he is told, “Authorise the owner to recover them.”

Any loss sustained by the muḍāraba is first charged against the profit, not against the principal. Should the loss exceed the profit, the agent bears no liability for the excess.

If they have divided the profit while the muḍāraba is still in force and the capital then perishes, wholly or partly, they must restore the distributed profit until the owner has recovered his principal; whatever remains thereafter is theirs to share. If the fund proves insufficient to restore the principal in full, the agent is not liable for the shortfall.

If they had already divided the profit and terminated the muḍāraba, then later renewed it and the capital was subsequently lost, they do not have to return the earlier profit.

The agent is permitted to sell for cash or on credit, but he may not arrange the marriage of a male or female slave out of the partnership assets.