customary practice, that the profit-sharing investment contract should remain in force, he is entitled to his stipulated share of the profit under that arrangement. If he acknowledges a profit, he is bound by his acknowledgment. If he subsequently claims to have made an error of an inexcusable kind, his claim is not accepted. If the error is of an excusable kind, there is a well-known disagreement over whether his claim is accepted.

He may not hand the capital over to another person without the owner’s permission or authorization under Islamic law. If he does so, he is liable for the capital, whether he transferred it under a valid or an invalid contract. Whatever entails liability under a valid contract also entails liability under an invalid one; whatever entails no liability under a valid contract entails none under an invalid one. If, however, the capital was wrongfully appropriated, he is liable in all circumstances. Whenever the working partner is negligent in handling the capital or exceeds his authority, he is liable for it.

Likewise, the second working partner sins if he denies another’s right, conceals money he is obliged to pay, or demands that they undertake to pay him remuneration without lawful justification. The governing authority must ensure that rights are delivered to those entitled to them. And Allah knows best.

He—may Allah have mercy on him—was asked:

A man gave another man capital under a profit-sharing investment arrangement. It later emerged that the recipient owed a debt predating that arrangement. May he give the creditors any of this capital, or not? And if he claims that he received none of the investment capital, or that it was lost, or that there was negligence in handling it without a cause