• In normal partnership (مشاركة), excess business liabilities may fall on partners according to their shares.
• Partners may agree that no partner will incur debt on behalf of the business.
• A partner who violates that condition may bear the excess liability caused by his violation.
• In investment partnership (مضاربة), the capital provider (رب المال)'s normal liability is limited to his investment unless he authorized debt on his behalf.
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Liability: partnership (مشاركة) vs investment partnership (مضاربة)
investment partnership (مضاربة): The Basic Structure
• In normal partnership (مشاركة), excess business liabilities may fall on partners according to their shares.
• Partners may agree that no partner will incur debt on behalf of the business.
• A partner who violates that condition may bear the excess liability caused by his violation.
• In investment partnership (مضاربة), the capital provider (رب المال)'s normal liability is limited to his investment unless he authorized debt on his behalf.