Current issues about Musharakah

Four main types of contractual partnership:
-Sharikah al-Abdan
-Sharikah al-Wujuh
-Sharikah al- Mufawadha
-Sharikah al-'Inan 

Sharikah al-Abdan 
Can a partnership where two or more professionals agree to work in partnership and share their earning together by contributes their skills and effort but not capital ? and the profit distributed among partner according to an agreed ratio (distributed between them irrespective of the volume of the work each partner has actually done).?

Shafie school: Rejected because of uncertainty(gharar), absent of capital and the labour and efforts cannot  be calculated.

Hanafi : According to Hanafi school, the contract is designed to gain profit, which is possible to attain.

Sharikah al-Wujuh
Can two person become partners by agreeing to purchase goods jointly upon their personal credit and to sell them on their joint account.However, both partner do not contribute any capital and they purchase commodities at a deferred price and sell them for cash ? At the same time, partners will equally share the profit and loss or based on agreed ratio.

Shafie and Maliki : Not allowed the contract.

Sharikah al-Mufawadha
A situation when two or more persons become partners in a venture on the condition to equally contribute to the capital and management and also equally share profit and loss. and at the same time each partner is an agent as well as a surety or a guarantor for the other partners.

Shafie, Maliki and Hambali : Its is not allowed and it is only be relevant to family businesses when a certain partnership is run by members of the same family.

Sharikah al -'Inan
No issue about  Sharikah al-'Inan and all  scholars agree upon this partnership.
This is because in this contract, partnership in which two or more partners contribute different amount of capital and share the profit and loss different proportion. Managing the business by one partner without others is also allowed. Moreover, partners are considered agent for each other but not as a guarantor. If any liabilities occurs toward third parties are separate and not joint.



References: Muhammad Yusuf Saleem, 2013, Islamic Commercial Law, John Wiley & Sons Singapore Pte.Ltd




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