Translation of Malik's Muwatta, Book 32:
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Book 32, Number 32.1.1:
Malik related to me from Zayd ibn Aslam that his father said, "Abdullah
and Ubaydullah, the sons of Umar ibn al-Khattab went out with the army
to Iraq. On the way home, they passed by Abu Musa al-Ashari who was
the amir of Basra. He greeted them and made them welcome, and told them
that if there was anything he could do to help them, he would do it.
Then he said, 'There is some of the property of Allah which I want to
send to the amir al-muminin, so I will lend it to you, and you can buy
wares from Iraq and sell them in Madina. Then give the principal to
the amir al-muminin, and you keep the profit.' They said that they would
like to do it, and so he gave them the money and wrote to Umar ibn al-Khattab
to take the money from them. When they came to sell they made a profit,
and when they paid the principal to Umar he asked, 'Did he lend everyone
in the army the like of what he lent you?' They said, 'No.' Umar ibn
al-Khattab said, 'He made you the loan, because you are the sons of
the amir al-muminin, so pay the principal and the profit.' Abdullah
was silent. Ubaydullah said, 'You do not need to do this, amir al-muminin.
Had the principal decreased or been destroyed, we would have guaranteed
it.' Umar said, 'Pay it.' Abdullah was silent, and Ubaydullah repeated
it. A man who was sitting with Umar said, 'Amir al-muminin, better that
you make it a qirad. 'Umar said, 'I have made it qirad.' Umar then took
the principal and half of the profit, and Abdullah and Ubaydullah, the
sons of Umar ibn al-Khattab took half of the profit."
Book 32, Number 32.1.2:
Malik related to me from al-Ala ibn Abd ar-Rahman from his father
from his father that Uthman ibn Affan gave him some money as qirad to
use provided the profit was shared between them.
Section: What Is Permitted in Qirad
Book 32, Number 32.2.3:
Malik said, "The recognised and permitted form of qirad is that a
man take capital from an associate to use. He does not guarantee it
and in travelling pays out of the capital for food and clothes and what
he makes good use of, according to the amount of capital. That is, when
he travels to do the work and the capital can support it. If he remains
with his people, he does not have expenses or clothing from the capital."
Malik said, "There is no harm in the two parties in a qirad helping
each other by way of a favour when it is acceptable to them both."
Malik said, "There is no harm in the investor of the capital buying
some of the goods from the agent in the qirad if that is acceptable
and without conditions."
Malik spoke about an investor making a qirad loan to a man and his
slave, to be used by both. He said, "That is permitted, and there is
no harm in it because the profit is property for his slave, and the
profit is not for the master until he takes it from him. It is like
the rest of his earnings."
Section: What Is Not Permitted in Qirad
Book 32, Number 32.3.4:
Malik said, "When a man owes money to another man and he asks him
to let it stay with him as a quirad, that is disapproved of until the
creditor receives his property. Then he can make it a qirad loan or
keep it. That is because the debtor may be in a tight situation, and
want to delay it to increase it for him."
Malik spoke about an investor who made a qirad loan to a man, and
some of the principal was lost before he used it, and then he used it
and made a profit. The agent wanted to make the principal the remainder
of the money after what was lost from it. Malik said, "His statement
is not accepted, and the principal is made up to its original amount
from his profit. Then they divide what remains after the principal has
been repaid according to the conditions of the qirad."
Malik said, "Qirad loan is only good in gold or silver coin and it
is never permitted in any kind of wares or goods or articles."
Malik said, "There are certain transactions which if a long span of
time passes after the transaction takes place, its revocation becomes
unacceptable. As for usury, there is never anything except its rejection
whether it is a little or a lot. What is permitted in other than it
is not permitted in it because Allah, the Blessed and the Exalted, said
in His Book, 'If you repent, you have your capital back, not wronging
and not wronged. ' "
32.4 Conditions Permitted in Qirad
Book 32, Number 32.3.5:
Yahya said that Malik spoke about an investor who made a qirad loan
and stipulated to the agent that only certain goods should be bought
with his money or he forbade certain goods which he named to be bought.
He said, "There is no harm in an investor making a condition on an agent
in qirad not to buy a certain kind of animal or goods which he specifies.
It is disapproved of for an investor to make as a condition on an agent
in qirad that he only buy certain goods unless the goods which he orders
him to buy are in plentiful supply and do not fail either in winter
or summer. There is no harm in that case."
Malik spoke about an investor who loaned qirad money and stipulated
that something of the profit should be his alone without the agent sharing
in it. He said, "That is not good, even if it is only one dirham unless
he stipulates that half the profit is his and half the profit is the
agent's or a third or a fourth or whatever. When he names a percentage,
whether great or small, everything specified by that is halal. This
is the qirad of the muslims."
He said, "It is also not good if the investor stipulates that one
dirham or more of the profit is purely his, with out the agent sharing
it and then what remains of the profit is to be divided in half between
them. That is not the qirad of the Muslims."
Section: Conditions Not Permitted in Qirad
Book 32, Number 32.4.6:
Yahya said that Malik said, "The person who puts up the principal
must not stipulate that he has something of the profit alone without
the agent sharing in it, nor must the agent stipulate that he has something
of the profit alone without the investor sharing. In qirad, there is
no sale, no rent, no work, no advance, and no convenience which one
party specifies to himself without the other party sharing unless one
party allows it to the other unconditionally as a favour and that is
alright to both. Neither of the parties should make a condition over
the other which increases him in gold or silver or food over the other
He said, "If any of that enters the qirad, it becomes hire, and hire
is only good with known and fixed terms. The agent should not stipulate
when he takes the principal that he repay or commission anyone with
the goods, nor that he take any of them for himself. When there is a
profit, and it is time to separate the capital, then they divide the
profit according to the terms of the contract. If the principal does
not increase or there is a loss, the agent does not have to make up
for what he spent on himself or for the loss. That falls to the investor
from the principal. Qirad is permitted upon whatever terms the investor
and the agent make a mutual agreement, of half the profit, or a third
or a fourth or whatever."
Malik said, "It is not permitted for the agent to stipulate that he
use the qirad money for a certain number of years and that it not be
taken from him during that time."
He said, "It is not good for the investor to stipulate that the qirad
money should not be returned for a certain number of years which are
specified, because the qirad is not for a term. The investor loans it
to an agent to use for him. If it seems proper to either of them to
abandon the project and the money is coin, and nothing has been bought
with it, it can be abandoned, and the investor takes his money back.
If it seems proper to the investor to take the qirad loan back after
goods have been purchased with it, he cannot do so until the buyer has
sold the goods and they have become money. If it seems proper to the
agent to return the loan, and it has been turned to goods he cannot
do so until he has sold them. He returns the loan in cash as he took
Malik said, "It is not good for the investor to stipulate that the
agent pay any zakat due from his portion of the profit in particular,
because the investor by stipulating that, stipulates fixed increase
for himself from the profit because the portion of zakat he would be
liable for by his portion of the profit, is removed from him.
"It is not permitted for the investor to stipulate to the agent to
only buy from so-and-so, referring to a specific man. That is not permitted
because by doing so he would become his hireling for a wage."
Malik spoke about an investor in qirad who stipulated a guarantee
for an amount of money from the agent, "The investor is not permitted
to stipulate conditions about his principal other than the conditions
on which qirad is based or according to the precedent of the sunna of
the Muslims. If the principal is increased by the condition of guarantee,
the investor has increased his share of the profit because of the position
of the guarantee. But the profit is only to be divided according to
what it would have been had the loan been given without the guarantee.
If the principal is destroyed, I do not think that the agent has a guarantee
held against him because the stipulation of guarantees in qirad is null
Malik spoke about an investor who gave qirad money to a man and the
man stipulated that he would only buy palms or animals with it because
he sought to eat the dates or the offspring of the animals and he kept
them for some time to use for himself. He said, "That is not permitted.
It is not the sunna of the Muslims in qirad unless he buys it and then
sells it as other goods are sold."
Malik said, "There is no harm in the agent stipulating on the investor
a slave to help him provided that the slave stands to gain along with
him out of the investment, and when the slave only helps him with the
investment, not with anything else."
Section: Qirad In Wares
Book 32, Number 32.5.7:
Yahya said that Malik said, "No one should make a qirad loan except
in coin, because the loan must not be in wares, since loaning wares
can only be worked in one of two ways: Either the owner of the wares
says to the borrower, 'Take these wares and sell them. Buy and sell
with the capital realized according to qirad.' The investor stipulates
increase for himself from the sale of his goods and what relieves him
of expenses in selling it. Or else he says, 'Barter with these goods
and sell. When you are through, buy for me the like of my goods which
I gave you. If there is increase, it is between you and me. 'It may
happen that the investor gives the goods to the agent at a time in which
they are in demand and expensive, and then the agent returns them while
they are cheap and he might have bought them for only a third of the
original price or even less than that. The agent then has a profit of
half the amount by which the price of the wares has decreased as his
portion of the profit. Or he might take the wares at a time when their
price is low, and make use of them until he has a lot of money. Then
those wares become expensive and their price rises when he returns them,
so he buys them for all that he has so that all his work and concern
have been in vain. This is an uncertain transaction and is not good.
If, however, that is not known until it has happened, then the wage
an agent in qirad would be paid for selling that, is looked at and he
is given it for his concern. Then the money is qirad from the day the
money became cash and collected as coin and it is returned as a qirad
Section: Hire in Qirad
Book 32, Number 32.6.8:
Yahya said that Malik spoke about a man who made a qirad loan to a
man and he bought wares with it and transported them to a commercial
centre. It was not profitable to sell them and the agent feared a loss
if he sold them, so he hired transport to take them to another city,
and he sold them there and made a loss, and the cost of the hire was
greater than the principal.
Malik said, "If the agent can pay the cost of the hire from what the
capital realized, his way is that. Whatever portion of the hire is not
covered by the principal, the agent must pay it. The investor is not
answerable for any of it. That is because the investor only ordered
him to trade with the principal. The investor is not answerable for
other than the principal. Had the investor been liable, it would have
been an additional loss to him on top of the principal which he invested.
The agent cannot put that on to the investor."
Section: Overstepping in Qirad
Book 32, Number 32.7.9:
Yahya said that Malik spoke about an investor who made a qirad loan
to a man, who used it and made a profit. Then the man bought with all
the profit a slave-girl and he had intercourse with her and she became
pregnant by him, and so the capital decreased. Malik said, "If he has
money, the price of the slave-girl is taken from his property, and the
capital is restored by it. If there is something left over after the
money is paid, it is divided between them according to the first qirad.
If he cannot pay it, the slave-girl is sold so that the capital is restored
from her price."
Malik spoke about an investor who made a qirad loan to a man, and
the agent spent more than the amount of the qirad loan when buying goods
with it and paid the increase from his own money. Malik said, "The investor
has a choice if the goods are sold for a profit or loss or if they are
not sold. If he wishes to take the goods, he takes them and pays the
agent back what he put in for them. If the agent refuses, the investor
is a partner for his share of the price in increase and decrease according
to what the agent paid extra for them from himself."
Malik spoke about an agent who took qirad money from a man and then
gave it to another man to use as a qirad without the consent of the
investor. He said, "The agent is responsible for the property. If it
is decreased, he is responsible for the loss. If there is profit, the
investor has his stipulation of the profit, and then the agent has his
stipulation of what remains of the money."
Malik spoke about an agent who exceeded and borrowed some of what
he had of qirad in money and he bought goods for himself with it. Malik
said, "If he has a profit, the profit is divided according to the condition
between them in the qirad. If he has a loss, he is responsible for the
Malik said about an investor who paid qirad money to a man, and the
agent borrowed some of the cash and bought goods for himself with it,
"The investor of the capital has a choice. If he wishes, he shares with
him in the goods according to the qirad, and if he wishes, he frees
himself of them, and takes all of the principal back from the agent.
That is what is done with some one who oversteps."
Section: Expenses Permitted in Qirad
Book 32, Number 32.8.10:
Yahya said that Malik spoke about an investor who made a qirad loan
to a man.
He said, "When the investment is large, the travelling expenses of
the agent are taken from it. He can use it to eat and clothe himself
in an acceptable fashion according to the size of the investment. If
it saves him trouble, he can take a wage from some of the capital, if
it is large, and he cannot support himself. There are certain jobs which
an agent or his like are not responsible for, amongst them are collecting
debts, transporting the goods, loading up and so forth. He can hire
from the capital someone to do that for him. The agent should not spend
from the capital nor clothe himself from it while he resides with his
family. It is only permitted for him to have expenses when he travels
for the investment. The expenses are taken from the capital. If he is
only trading with the property in the city in which he resides, he has
no expenses from the capital and no clothing."
Malik spoke about an investor who paid qirad money to a man, and the
agent went out with it and with his own capital. He said, "The expenses
come from the qirad and from his own capital according to their proportions."
Section: Expenses Not Permitted in Qirad
Book 32, Number 32.9.11:
Yahya said that Malik spoke about an agent who had qirad money with
him and he spent from it and clothed himself. He said, "He cannot give
away any of it, and neither a beggar nor anyone else is to be given
any of it and he does not pay anyone compensation from it. If he meets
some people, and they bring out food and he brings out food, I hope
that that will be permitted to him if he does not intend to bestow something
on them. If he intends that or what is like that without the permission
of the investor, he must get the sanction of the investor for it. If
he sanctions it, there is no harm. If he refuses to sanction it, he
must repay it with like if he has something which is suitable as compensation."
Section: Debts in Qirad
Book 32, Number 32.10.12:
Yahya said that Malik said, "The generally agreed on way of doing
things among us about an investor who pays qirad money to an agent to
buy goods, and the agent then sells the goods for a price to be paid
later, and has a profit in the transaction, then the agent dies before
he has received payment, is that if his heirs want to take that money,
they have their father's stipulated portion from the profit. That is
theirs if they are trustworthy to take the payment. If they dislike
to collect it from the debtor and they refer him to the investor, they
are not obliged to collect it and there is nothing against them and
nothing for them by their surrendering it to the investor. If they do
collect it, they have a share of it and expenses like their father had.
They are in the position of their father. If they are not trustworthy
to do so, they can bring someone reliable and trustworthy to collect
the money. If he collects all the capital and all the profit, they are
in the position of their father."
Malik spoke about an investor who paid qirad money to a man provided
that he used it and was responsible for any delayed payment for which
he sold it. He said, "This is obligatory on the agent. If he sells it
for delayed payment, he is responsible for it."
Section: Goods in the Qirad
Book 32, Number 32.11.13:
Yahya said that Malik spoke about an investor who gave qirad money
to a man, and then the man sought a loan from the investor or the investor
borrowed money from the agent, or the investor left goods with the agent
to sell for him, or the investor gave the agent dinars to buy goods
with. Malik said, "There is no harm if the investor leaves his goods
with him knowing that if the agent did not have his money and he had
asked a similar thing of him, he would have still done it because of
the brotherhood between them or because it would have been no bother
to him and that had the agent refused that, he would not have removed
his capital from him. Or if the agent had borrowed from the investor
or carried his goods for him and he knew that if the investor had not
had his capital with him, he would have still done the same for him,
and had he refused that to him, he would not have returned his capital
to him. If that is true between both of them and it is in the way of
a favour between them and it is not a condition in the terms of the
qirad, it is permitted and there is no harm in it. If a condition comes
into it, or it is feared that the agent is only doing it for the investor
in order to safeguard the capital in his possession, or the investor
is only doing it because the agent has taken his capital and will not
return it to him, that is not permitted in qirad and it is part of what
the people of knowledge forbid.' "
Section: Loans in Qirad
Book 32, Number 32.12.14:
Yahya said that Malik spoke about a man who loaned another man money
and then the debtor asked him to leave it with him as a qirad. Malik
said, "I do not like that unless he takes his money back from him, and
then pays it to him as a qirad if he wishes or if he wishes keep it."
Malik spoke about an investor who paid a man qirad money and the man
told him that it was collected with him and asked him to write it for
him as a loan. He said, "I do not like that unless he takes his money
from him and then lends it to him or keeps it as he wishes. That is
only out of fear that he has lost some of it, and wants to defer it
so that he can make up what has been lost of it. That is disapproved
of and is not permitted and it is not good."
Section: Accounting in Qirad
Book 32, Number 32.13.15:
Yahya said that Malik spoke about an investor paying qirad money to
an agent who made a profit and then wanted to take his share of the
profit and the investor was away. He said, "He should not take any of
it unless the investor is present. If he takes something from it, he
is responsible for it until it is accounted for in the division of the
Malik said, "It is not permitted for the parties involved in a qirad
to account and divide property which is away from them until the capital
is present, and the investor is given the principal in full. Then they
divide the profit into their agreed portions."
Malik spoke about a man taking qirad money, and buying goods with
it while he had a debt. His creditors sought and found him while he
was in a city away from the investor, and he had profitable merchandise
whose good quality was clear. They wanted him to sell the merchandise
for them so that they could take his share of the profit. Malik said,
"None of the profit of the qirad is taken until the investor is present.
He takes his principal and then the profit is divided mutually between
Malik spoke about an investor who put qirad money with an agent and
he used it and had a profit. Then the principal was set aside and the
profit divided. He took his share and added the share of the investor
to his principal in the presence of witnesses he had called. Malik said,
"It is not permitted to divide the profit unless the investor is present.
If he has taken something here turns it until the investor has received
the principal in full. Then what remains is divided into their respective
Malik spoke about an investor who put qirad money with an agent. The
agent used it and then came to the investor and said, "This is your
portion of the profit, and I have taken the like of it for myself, and
I have retained your principal in full." Malik said, "I do not like
that, unless all the capital is present, the principal is there and
he knows that it is complete and he receives it. Then they divide the
profit between them. He returns the principal to him if he wishes, or
he keeps it. The presence of the principal is necessary out of fear
that the agent might have lost some of it, and so may want it not to
be removed from him and to keep it in his hand."
Section: A General View of Qirad
Book 32, Number 32.14.16:
Yahya said that Malik spoke about an investor who put qirad money
with an agent who bought goods with it, and the investor told him to
sell them. The agent said that he did not see any way to sell at that
time and they quarrelled about it. He said, "One does not look at the
statement of either of them. The people of experience and insight concerning
such goods are asked about these goods. If they can see anyway of selling
them they are sold for them. If they think it is time to wait, they
Malik spoke about a man who took qirad money from an investor and
used it and when the investor asked him for his money, he said that
he had it in full. When he held him to his settlement he admitted that
"Such-and-such of it was lost with me," and he named an amount of money.
"I told you that so that you would leave it with me." Malik said, "He
does not benefit by denying it after he had confirmed that he had it
all . He is answerable by his confession against himself unless he produces
evidence about the loss of that property which confirms his statement.
If he does not produce an acceptable reason he is answerable by his
confession, and his denial does not avail him."
Malik said, "Similarly, had he said, 'I have had such-and-such a profit
from the capital,' and then the owner of the capital asked him to pay
him the principal and his profit, and he said that he had not had any
profit in it and had said that only so it might be left in his possession,
it does not benefit him. He is taken to account for what he affirmed
unless he brings acceptable proof of his word, so that the first statement
is not binding on him."
Malik spoke about an investor who put qirad money with an agent who
made a profit with it. The agent said, "I took the qirad from you provided
that I would have two-thirds." The owner of the capital says, "I gave
you a qirad provided that you had a third." Malik said, "The word is
the word of the agent, and he must take an oath on that if what he says
resembles the known practice of qirad or is close to it. If he brings
a matter which is unacceptable and people do not make qirads like that,
he is not believed, and it is judged to be according to how a qirad
like it would normally be."
Malik spoke about a man who gave a man one hundred dinars as a qirad.
He bought goods with it and then went to pay the one hundred dinars
to the owner of the goods and found that they had been stolen. The investor
says, "Sell the goods. If there is anything over, it is mine. If there
is a loss, it is against you because you lost it." The agent says, "Rather
you must fulfil what the seller is owed. I bought them with your capital
which you gave me." Malik said, "The agent is obliged to pay the price
to the seller and the investor is told, 'If you wish, pay the hundred
dinars to the agent and the goods are between you. The qirad is according
to what the first hundred was based on. If you wish, you are free of
the goods.' If the hundred dinars are paid to the agent, it is a qirad
according to the conditions of the first qirad. If he refuses, the goods
belong to the agent and he must pay their price."
Malik spoke about two people in a qirad who settled up and the agent
still had some of the goods which he used - threadbare cloth or a waterskin
or the like of that. Malik said, "Any of that which is insignificant
is of no importance and belongs to the agent. I have not heard anyone
give a decision calling for the return of that. Anything which has a
price is returned. If it is something which has value like an animal,
camel, coarse cloth or the like of that which fetches a price, I think
that he should return what he has remaining of such things unless the
owner overlooks it."