A Mudhaarabah Agreement With Goods As The Capital

Mudhaaraba can only be enacted with cash from one party whilst the other party will carry out the work. It cannot be enacted with goods from one party and work from the other party.

Yes, in the case of a Shirkat (partnership agreement) where two individuals intend enacting a partnership but both partners possess goods only, then each partner is permitted to sell 50% of his goods (to the other partner) in lieu of half his goods, and by doing so a partnership could be enacted. However, this ruling is not applicable to Mudhaarabah, as the nature of Mudaarabha partnership is different.