tied to a particular item of merchandise, or to a single trading journey, and the like; or if the capital consists of something other than coined money or silver bullion ⦗1⦘, or is greatly adulterated, the partnership is invalid—just as a silent partnership (mudaraba) would be under the same conditions. Any loss ⦗2⦘ is borne in proportion to each partner’s capital contribution, and it is not a requirement that the two capitals be physically mixed.

Eighth: the silent partnership (mudaraba). It is set up when one says, “Trade with this capital and the profit shall be shared between us.” They divide the profit equally, and if a specific share is named for one of them, the remainder belongs to the other. If they later disagree over to whom the stipulated share pertains, it is awarded to the managing partner, as in musaqāt and muzāraʿa.

The managing partner may not enter into another mudaraba on behalf of a second investor if doing so would harm the first, unless the first gives permission; should he do so, he must restore the first investor’s share in the venture. Nor may he, without explicit consent, purchase a slave who would automatically be freed by his owner’s acquisition; if he does, he is liable for its price ⦗3⦘ and the slave is emancipated.

No profit may be distributed while the contract remains in force except by mutual agreement. If, after trading has begun, the principal capital—or part of it—perishes, or a loss occurs, that amount is deducted from the profit before any division, whether the profit is still in goods or has been converted to cash ⦗4⦘, once the accounts have been settled.

Third: the partnership of credit standing (shirka al-wujūh). This arises when two people agree to share the profit of whatever they buy on credit on the strength of their reputations ⦗5⦘; whatever profit they realize is divided between them, and the like.

Each partner is both the agent and the guarantor of the other with respect to the purchase price. Ownership and profit are apportioned according to their stipulation, while any loss is borne in proportion to their respective shares.

Fourth: the partnership of labor (shirka al-abdān). This occurs when they share in whatever they earn from lawful activities such as gathering firewood or hunting, or when they jointly accept work contracts, like blacksmiths or carpenters.