Muwatta 2036

Yahya said Malik said of a man given money for profit-sharing who borrowed a loan from the owner of the money, or the owner of the money borrowed a loan from him, or the owner sent with him goods to sell for him, or dinars with which to buy goods for him. Malik said: if the owner of the money only sent goods with him, knowing that if the money were not with him he would do the same if asked, out of friendship between them or because it is easy for him, and if he refused, he would not take his money from him, and when that is valid from both of them, and it is a kindness and not a stipulation in the basis of the profit-sharing, it is lawful and there is no harm. If a stipulation enters, or it is feared that the worker did that for the owner so that he would leave his money in his hands, or the owner did that so that the worker would keep his money and not return it, that is not permitted in profit-sharing, and the scholars forbid it. ¹

Belongs to the Muwatta, Book of Profit-Sharing (qiradh). Source: the Muwatta. Mentions Yahya ibn Yahya al-Laythi, Malik ibn Anas. Built on in the chapters on profit-sharing (qiradh) and advance purchase (salaf).