Its not obligatory for the trader to return the investor’s money in case of loss

Question:

If a person gave an amount of money to a trader as investment then the trader due to his inefficiency and negligence in the trade suffers a loss and refuses to pay back the amount. Is it proper for the person to demand his money in such case and what is your advice?

Answer :

It is not obligatory that the money is returned to this person. The person chose this trader and knew his condition and gave him his money. If he makes an error in his trade then he is not obliged to return your money.

You already were pleased to enter into trade with this trader from the beginning

So it is not upon him to return it except in the case that if he purposely wasted your money and fell short in his responsibility in a large manner which is not disagreed upon. This is a separate matter. Otherwise, the original ruling is that you already were pleased by this trader (by giving your money to him).

Answered by

Shaykh Abu Bilal Al Hadhrami hafidhahullah

Answered on

8 Rajab 1441

(1st March 2020)

Dars between Magrib and esha

Translated by

Abu Muhammad Nezam Al-Hindi