Question 1152) - If the first Mudarib handed over the capital over to a second party without permission, is he liable for the amount?

A: He is not liable by the mere contract with the second Mudarib or by the second's transacting with the money. He is liable once the second Mudarib earns a profit to pay the money to the capital contributor.*

* Once the capital-contributor makes the first Mudarib responsible, the contract with the second is validated and the profits will be divided as what the two agreed upon.

~ al-Quduri ~