Types of Partnership

**1. 'Inan Partnership (Capital Partnership):** Two or more people partner in capital to trade with. Named so because the partners are equal in capital and disposal, like equalized horse reins when riding together. **Conditions for Validity:** - Capital from each partner must be known cash, present - A known share of profit must be specified for each partner --- **2. Mudarabah Partnership (Silent Partnership):** One partner gives another capital to trade with for a known share of profit. The capital owner provides funds, the worker provides effort. --- **3. Wujuh Partnership (Credit Partnership):** Partners share in the profit of what they purchase using their reputation (credit worthiness), without having capital, relying on merchants' trust in them. --- **4. Abdan Partnership (Labor Partnership):** Partners share in what they earn through their labor from permissible activities like gathering firewood, hunting, mining, collecting wood, or sharing work they undertake like weaving, tailoring, etc. --- **Profit & Loss Distribution:** - Profit is distributed between partners according to their agreement - Loss is between them according to their capital contributions (not applicable to mudarabah - where loss is on capital owner only) - Each may terminate the partnership contract whenever he wishes - Partnership is also terminated by death or insanity of either partner