Partnerships


Bahishti Zewar, Fiqh, Part 5-Principles of Business / Saturday, November 20th, 2010

1. A person passed away and left behind some wealth. All his wealth will fall under the partnership of all his rightful inheritors. As long as permission is not obtained from all the inheritors, no one can take it for his personal purposes. If anyone takes it and uses it, he will be sinning.

2. Two women got together and purchased a utensil. This utensil will now be under their joint partnership. One of the women cannot use it or sell it without the permission of the other.

3. Each of two women contributed a certain amount of money and purchased guavas, pears, berries, jambolana, cucumbers, melons, etc. under a joint partnership. When the items came from the market, one of the women was not present. In such a case, do not divide the items taking your share and leaving her share one side thinking that when she comes she will take her share. As long as both of them are not present, it is not permissible to divide the shares. If you divide the shares and eat your share before she can arrive, you will be committing a major sin.

However, if wheat or any other grain was purchased under a joint partnership and you divided it, took your share and gave hers to her when she arrived, this is permissible. However, in such a case, if any theft takes place in the share of the other wife before her share could be given to her, then this would be regarded as a loss of both the women and she (the woman whose share got stolen or disappeared in any other way) will become a partner in her (the women whose share was not stolen) share.

4. Two persons invested R100 each and commenced with a business and agreed that whatever profits they make will be divided equally between them. This is valid. If they agree that one person will receive two thirds of the profits and the other will receive one third, it is also valid. This is irrespective of whether both of them invested the same amount of money or one invested more and the other less.

5. These two persons hadn’t purchased the goods as yet and the money got stolen. Alternatively, both their money was still kept separately and the money of one of them got stolen. In such a case the partnership will be annulled. They must become partners again and then commence with their business.

6. Two persons entered into a partnership and one of them said: “Take this R100 of mine, add R100 from your side and you start selling clothes. We will divide the profits between us.” One of them purchased some clothes (with his own money). Thereafter, R100 of the other person (the one who did not purchase the clothes) got stolen. In such a case, both of them will be partners in whatever clothes were purchased and the other person (the one whose money got stolen) can take money from him equal to the value of half the clothes.

7. When embarking on a business venture, one of them made the condition that whatever profits we make, R10 or R15 will be mine and the balance will be yours. This is not permissible.

8. The goods that were for sale got stolen. Both of them will have to bear the loss. It cannot happen that all the losses are borne by one person. If they make an agreement that whatever losses we encounter, I will bear them and whatever profits we make we will share it between us, this is not permissible.

9. Once a partnership has been pronounced to be prohibited or invalid, then when they share the profits, all their previous agreements will not be taken into consideration. Instead, if both of them made an equal investment, they will receive equal profits. If the investment was not the same, the profits will be shared according to the percentage invested by each person irrespective of what agreement may have been made. Agreements are only taken into consideration when the partnership is valid and is not allowed to become prohibited.

10. Two women entered into a partnership on the basis that whatever sewing we get, we will do it together and whatever money we receive for the sewing, we will share it between ourselves. This partnership is valid. If they make an agreement that we will do the sewing together but the money that we receive, I will take two thirds and you must take one third, it will still be valid. But if they agree that one will receive R10 or R20, and the other will receive the balance, this is not permissible.

11. One of these two women accepted a length of material which had to be sewn into a garment. The other woman cannot say: “Why did you take this job? Since you have taken it, you will have to sew it.” Instead, the responsibility of sewing the garment is now wajib on both of them. If one of them does not sew, the other one will have to sew it. Alternatively, both of them can sew it together. In short, they cannot refuse to sew it.

12. The customer who had given the job of sewing came to collect her garment. When she came to collect it, the woman who had accepted the job was not present. Instead, the other partner was present. The customer has the right to ask for the garment from this partner as well. The latter cannot say that she has nothing to do with it and that she must collect it from the person whom she had given it to.

13. In the same way, both partners have the right to ask for the money for carrying out the job. The customer cannot say that she will not give it to you and that she will only pay the person to whom she had given the job. When both of them are working under a partnership, both of them have the right to ask for the money. The customer will be fulfilling her duty by paying any one of them.

14. Two women entered into a partnership that they will go together into the jungle and bring firewood. This partnership is not valid. The firewood belongs to the one who picks it up. There is no joint ownership in this.

15. One woman said to another: “Keep these eggs under your hen. Whatever chicks are born, we will share them equally.” This is not permissible.

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