Yahya said that Malik spoke about a man who made a qirad loan toa man and he bought wares with it and transported them to a commercialcentre. It was not profitable to sell them and the agent feared a lossif he sold them, so he hired transport to take them to another city,and he sold them there and made a loss, and the cost of the hire wasgreater than the principal.Malik said, "If the agent can paythe cost of the hire from what the capital realized, his way is that.Whatever portion of the hire is not covered by the principal, theagent must pay it. The investor is not answerable for any of it. Thatis because the investor only ordered him to trade with the principal.The investor is not answerable for other than the principal. Had theinvestor been liable, it would have been an additional loss to him ontop of the principal which he invested. The agent cannot put that onto the investor."
USC-MSA web (English) reference: Book 32, Hadith 8