Muwatta 2047

Malik says of a man who gave another a hundred dinars for profit-sharing, who bought goods with it, then went to pay the hundred dinars to the owner of the goods, and found they had been stolen. The owner of the money said: sell the goods; if there is an excess, it is mine, and if there is a shortfall, it is on you, because you lost it. The profit-sharer said: rather, it is for you to fulfil this right; I bought them with the money you gave me. Malik said: the worker who bought the goods is bound to pay their price to the seller, and it is said to the owner of the money: if you wish, pay the hundred dinars to the profit-sharer, and the goods are between you, and it is profit-sharing as the first hundred was; if you wish, release yourself from the goods. If he pays the hundred dinars to the worker, it is profit-sharing in the manner of the first profit-sharing. If he refuses, the goods are the worker's, and its price is due from him. ¹

Belongs to the Muwatta, Book of Profit-Sharing (qiradh). Source: the Muwatta. Mentions Malik ibn Anas. Built on in the chapters on profit-sharing (qiradh).