The World Federation One Stop Fiqh

Ruling 2157

If the partners agree that one person will take all the profits or that one of them will bear all the losses, the validity of such a partnership is problematic (maḥall al‑ishkāl) [i.e. based on obligatory precaution (al‑iḥtiyāṭ al‑wājib), it is not valid].1
1 As mentioned in Ruling 6, the term ‘problematic’ (maḥall al‑ishkāl) amounts to saying that the ruling is based on obligatory precaution.