Discussion of the rulings that apply to a valid partnership
A valid partnership is counted among the revocable contracts, not the binding ones—that is, either partner may withdraw from it whenever he wishes. It is a contract that is not transmissible by inheritance. Should the two partners be comparable in the size of their households and remain within the customary standard of maintenance for people of their station, their living expenses and clothing may be met from the partnership assets.

Either partner may, when necessity requires, consign merchandise to an agent for trade, enter into a muḍārabah agreement, or place goods in safekeeping. He may not, however, give any part of the partnership property as a gift, nor may he dispose of it in any way except what he believes to be in the best interest of them both.

Whoever is negligent or oversteps the limits is liable. Thus, if a partner pays out partnership funds without having witnesses and the recipient later denies having received them, that partner must make good the loss, for the negligence lies in failing to secure testimony.

He is permitted to accept defective goods in a purchase. An acknowledgment by one partner that partnership property belongs to someone suspected of collusion is not valid, although rescission (iqālah) or transfer (tawliyyah) of a sale is permissible. By unanimous agreement, neither partner is liable for losses that befall the partnership capital without fault.

A fully authorized partner in a mufāwaḍah partnership may not enter into a muḍārabah with a third party except with the permission of his colleague. Each partner occupies the legal position of the other with respect to all rights and liabilities stemming from the partnership capital. The subsidiary issues connected to this chapter are numerous.