Ruling 2231 — Sleeping Partnership (Muḍārabah)

If a sleeping partnership contract is non-specific and does not mention any particular restrictions, the worker can buy, sell, and decide on the type of goods according to what he thinks is in the best interest [of the partnership]. However, it is not permitted (jāʾiz) for him to take the goods from that city to another city unless this is something normal, such that the non-specific nature of the contract would be commonly understood to include it or the owner authorises him [to take the goods to another city]. If he transfers the goods to another place without authorisation from the owner and the goods perish or a loss is incurred, he is responsible.