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The ruling on taking a fixed profit in a partnership.

Financial Transactions,Company and speculation,The ruling on taking a fixed profit in a partnership.

Fatwa No :
82174
| Date :
0000-00-00

Fatwa No : 82174
The ruling on taking a fixed profit in a partnership.
معاملات / مالی معاوضات / شرکت و مضاربت

The ruling on taking a fixed profit in a partnership.

What do the esteemed scholars and Muftis say regarding the following issue that a person owns a factory engaged in the iron business. I make an agreement with him that I will give him a sum of money and become a partner in his business on the condition that, for every ton of goods, I will receive a profit ranging from 500 to 1500 (as agreed), while in case of loss, the factory owner alone will bear the entire loss. Therefore, the question is: Is it permissible to enter into such a partnership agreement or not?

الجوابُ حامِدا ًو مُصلیِّا ً

It is not permissible for the questioner to enter into a partnership with the mentioned person in such a manner that he is given an almost fixed profit from the business, while in the case of loss, the factory owner bears the entire loss himself. Therefore, this agreement should be terminated, and a new agreement should be made in which the profit is determined based on a percentage for each partner, and in the event of a loss, each partner bears the loss in proportion to the amount of capital he has invested.

مأخَذُ الفَتوی

کمافی الھندیۃ: اشتركا فجاء أحدهما بألف والآخر بألفين على أن الربح والوضيعة نصفان فالعقد جائز والشرط في حق الوضيعة باطل، فإن عملا وربحا فالربح على ما شرطا، وإن خسرا فالخسران على قدر رأس مالهما، كذا في محيط السرخسي اھ(2/320)۔
وفی الھدایۃ: ولایجوز الشرکۃ اذا شرط لاحدھما دراھم مسماۃ من الربح اھ(2/611)۔

And Allah knows best
Darulifta Jamia Binoria Aalamia

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