Partnership: One Partner Taking All Profits or Bearing All Losses

Practical Laws of Islam as per the teachings of Ayatullah Sistani

Ruling 2157

If the partners agree that one person will take all the profits or that one of them will bear all the losses, the validity of such a partnership is problematic (maḥall al‑ishkāl) [i.e. based on obligatory precaution (al‑iḥtiyāṭ al‑wājib), it is not valid].[¹]

-Ayatullah Sistani, Practical Laws of Islam, Buying and Selling

1. As mentioned in Ruling 6, the term ‘problematic’ (maḥall al‑ishkāl) amounts to saying the ruling is based on obligatory precaution.