The World Federation One Stop Fiqh

Ruling 2154

If two people form a partnership and [make an agreement that] each of them will purchase a commodity with his own credit, and that person will be responsible for paying off the debt for it, but they will share the profits arising from the commodities each one has purchased, such an agreement is not valid. However, if each one makes the other his agent (wakīl) to be his partner in whatever he purchases on credit (nasīʾah) – i.e. he purchases a commodity for himself and for his partner with both of them being responsible for paying off the debt – then both of them become partners in the commodity.