Chapter: Comprehensive Rulings on Qarad

It is impermissible to merge the qarad contract with any other agreement—whether a sale, a lease, or any contract whatsoever. Nor may either of the two parties stipulate that the other advance him a personal loan; if they do, the qarad is invalid, and any profit generated by that loan belongs to the party who received it.

If the capital is afflicted by a calamity—such as theft, highway robbery, the bankruptcy of a debtor, a commercial loss, or any other cause of diminution—and the agent then continues to trade with what remains and realizes a gain, he is entitled to none of that gain until the capital has been restored in full, whether through renewed commerce or by returning to the amount it held on the day he first received it. Thereafter they divide whatever profit may accrue, if any, and the agent must