Subject : It is Conditioned to Advance Payment of Capital in Partnership

Fatwa Number : 3377

Date : 08-04-2018

Classified : Partnership in Business

Fatwa Type : Search Fatawaa

Question :

There is a building that costs 700.000 JDs. A number of individuals have paid 300.000 JDs in cash at the start of construction. The remaining 400.000 JDs are supposed to be paid later on by one person or more, or a company. The latter have guaranteed bringing that sum over a period to be agreed upon with all partners where it will be paid in full during the completion of the project(Building). Is this contract valid or should the whole capital be paid at the beginning of construction?

The Answer :

All perfect praise be to Allah, and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

In principle, it is conditioned that each partner pays a share in the capital of a partnership at the start of business. Rather, the four Imams have agreed that the money should be available upon the start of business so as for the partnership to be valid.

It isn`t permissible for a partner to delay the payment of his share in the capital. However, he becomes a partner from the moment he pays it. Accordingly, in the above question, partnership is established amongst those who paid the 300.000JDs, and whatever is constructed in that building from that sum is theirs alone, and it is theirs when sold as well. Yet, when the person who failed to give his share at the beginning of the project manages to pay it, he becomes a partner from the moment of payment. Therefore, whatever is sold from that building, afterwards, is the right of all partners. Allah, The Almighty, said, " O ye who believe! Eat not up your property among yourselves in vanities"{An-Nisa`, 29}. And Allah knows best.

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