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Fatawaa - Search Sections - Partnership in Business

The Impact of one Partner Carrying out the Work and Compensating for the Shortcomings of the other Partner in a Business Partnership

I began working with an online platform as a lecturer for one of the university subjects. The arrangement was that I provide (60%) of the content, and the platform manager takes (40%) for advertising the course, as well as uploading the videos to the platform. Lately, I've noticed a lapse in the platform's responsibilities. I handle the teaching, advertising, and video uploads, while they haven't fulfilled their agreed-upon duties. Is it permissible for me to take the full (100%) considering their non-compliance with the agreed terms? I have informed the responsible party about the shortcomings, but it has been to no avail. Consequently, I decided to work independently without using their platform and take the full percentage. Is this permissible?

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Guidelines for Trade through Mudarabah

My brother has a car dealership, and I provide him with money to use in trading cars, by cash and by installments. In return, he gives me a share of the profit. Is this transaction haram (unlawful)?

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Islamic Ruling when a New Partner Joins and Existing Partnership

Can new partners join an existing partnership with a varying share rate between partners, knowing that the company's activity is in trading cars in cash and installments?

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In Principle, Financial Transactions should be Based on Clear Agreement between the Parties

Zaid came to Amr advising him to invest a sum of money in the stock exchange, and told him: "Don't worry, I got this." Accordingly, Amr understood that the profit will be 50/50 and Zaid alone will be liable for the loss. Amr paid that sum as a mixture of investment and debt. The contract was concluded in Zaid`s name who paid (20000 JDS) by Amr. Within 45 days, they made a profit of about (6000 JDs) and this amount was divided equally between them. However, after a few days, the stock exchange collapsed and all the investors lost their money. Zaid filed a case against the stock exchange, but it was of no avail.  Zaid committed to pay (17000 JDs) to Amr. I.e. the capital minus his portion of the profit (3000 JDs). What is the ruling of Sharia on this contract?

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Ruling when one Partner Handles a Financial Matter without the Permission of the other Partner

One partner has obtained a loan from a conventional bank based on a mortgage from his father. However, the company`s system stipulates that the signature authority with regards to financial matters can`t be conducted save with the approval of both partners. In addition, the bank has exempted the non-borrowing partner from the guarantee. In light of this, is the non-borrowing partner liable for that loan?

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Ruling on Leverage Trading

Financial Leverage is fake money with which the brokerage firm helps the customer/trader to enter into the financial market. It isn`t a loan because the money is fake and interest-free. What is the ruling of Sharia on this?

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The Legal Characterization of School Cafeterias and their Rules under Sharia

What is the legal characterization/classification of school cafeterias and what are the Sharia rules governing them? 

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Partner`s Liability in Limited Liability Company

What is the ruling of Sharia in case a limited liability company failed to pay the rent and what is the amount for which each of the partners is liable?

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Ruling on Paying Salary to Non-Working Partner from Company`s Profits

A fuselage was purchased to be turned into a restaurant based on a contract of partnership and employment. The first party is responsible for bringing this fuselage to a certain location while the second shall do whatever is needed to equip this restaurant to the fullest. In order to safeguard the financial rights of the first party, one point of the contract stipulated the following: "The second party shall pay (1000 JDs), at the minimum, to the first party from the monthly revenues and for each month, except during forced closures and in the incidence of storms and inactivity resulting from force majeure." After asking about this, we were told that it is unlawful to determine this percentage at a certain sum for this is usury (Riba). Therefore, it was suggested to adjust the above point into one of the following alternatives: First, the second party shall pay a monthly salary (1000 JDs) to the first party, although the latter party won`t be working on the project. Second, the second party shall pay (1000-1500 JDs), at minimum, to the first party from the monthly profits. In light of this, is determining a percentage from the profits, as indicated above, unlawful according to Sharia?

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Ruling on Spreading Rumors to Increase Stock Prices

One economic group plans to spread rumors to increase the stock prices of a certain company. Is it permissible that I buy the stocks of this particular company prior to the increase so that I sell them latter for a higher price. In fact, I have neither the power nor the potential to stop this group from doing that because they work on an international level, and I can`t even tell the people about the truth of the matter because it happens suddenly. However, the company`s work and stocks are, in principle, lawful.

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Ruling on Debts for which Modern Corporations are Liable

What is the stand of Sharia on investing in a corporation, which trades in lawful goods, and has a separate legal entity? And the fact that partners aren`t required to pay off that corporation`s debts from their own wealth as they are the liability of the corporation itself?

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Ruling on Partner Withdrawing from Share in Capital before Execution of Project

Two partners have agreed to execute a housing project. One of them pays a certain amount in cash and the other pays whatever is needed to finish the project. However, after purchasing the land upon which the houses were supposed to be built, one of them withdrew some amounts from his share in the capital of the company before the execution of the project. How should the profits be divided?

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A Partner is Permitted to Rent his Share to his Partner

Is a partner permitted to rent his share to his other partner against a fixed monthly payment?

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Took a Loan from a Company and Decided to Return it after it Closed down

What is the ruling on one who has taken a loan from a company with the intention of not paying it back? However, after sometime, he decided to return it, but found out that the company had closed down, most debts were lapsed, and owners changed. Is it permissible to give that money to public or private institutions as charity on behalf of its owners?

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Ruling when Capital Provider Stipulates Participating in Mudarabah Business

Is the capital provider/owner allowed to participate in the Mudarabah business?

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