#1456 Yahya said that Malik said, "No one should make a qirad loan
except in coin, because the loan must not be in wares, since loaning
wares can only be worked in one of two ways:
Either the owner of the
wares says to the borrower, 'Take these wares and sell them. Buy and
sell with the capital realized according to qirad.' The investor
stipulates increase for himself from the sale of his goods and what
relieves him of expenses in selling it. Or else he says, 'Barter with
these goods and sell. When you are through, buy for me the like of my
goods which I gave you. If there is increase, it is between you and
me. 'It may happen that the investor gives the goods to the agent at a
time in which they are in demand and expensive, and then the agent
returns them while they are cheap and he might have bought them for
only a third of the original price or even less than that. The agent
then has a profit of half the amount by which the price of the wares
has decreased as his portion of the profit. Or he might take the wares
at a time when their price is low, and make use of them until he has a
lot of money. Then those wares become expensive and their price rises
when he returns them, so he buys them for all that he has so that all
his work and concern have been in vain. This is an uncertain
transaction and is not good. If, however, that is not known until it
has happened, then the wage an agent in qirad would be paid for
selling that, is looked at and he is given it for his concern. Then
the money is qirad from the day the money became cash and collected as
coin and it is returned as a qirad like that."