He stipulated that, along with the sale, he would be a partner in the profit of the share he sold
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Fatwa number ( 20712 )
Q: There are two people who have a partnership in a commercial shop, split equally. One of them decided to withdraw from the partnership on the condition that full ownership of the shop would transfer to his other partner, after an inventory of the goods in the shop and an appraisal of its assets and valuable movable property. The two parties agreed that the partner to whom full ownership of the shop would transfer would pay the withdrawing partner half of the full value of the shop. Since the buying partner does not have the amount at present, they agreed that the payment would be made in equal monthly installments. And if the shop achieves any profits during the payment period
they are to be split equally between the two partners. Does this agreement fully conform to what the pure Shari'ah has brought? Please inform us.
A: The scenario described in the question is not permissible, and the contract is invalid; because it contains two sales in one sale, where he stipulated that, along with the sale, he would be a partner in the profit of the share he sold, in which he has no right. Also, it contains excessive uncertainty and ignorance; because he stipulated that he would be a partner in the profit only, without the loss. If there is a dispute between them, the reference for that is the court. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: There are two people who have a partnership in a commercial shop, split equally. One of them decided to withdraw from the partnership on the condition that full ownership of the shop would transfer to his other partner, after an inventory of the goods in the shop and an appraisal of its assets and valuable movable property. The two parties agreed that the partner to whom full ownership of the shop would transfer would pay the withdrawing partner half of the full value of the shop. Since the buying partner does not have the amount at present, they agreed that the payment would be made in equal monthly installments. And if the shop achieves any profits during the payment period
they are to be split equally between the two partners. Does this agreement fully conform to what the pure Shari'ah has brought? Please inform us.
A: The scenario described in the question is not permissible, and the contract is invalid; because it contains two sales in one sale, where he stipulated that, along with the sale, he would be a partner in the profit of the share he sold, in which he has no right. Also, it contains excessive uncertainty and ignorance; because he stipulated that he would be a partner in the profit only, without the loss. If there is a dispute between them, the reference for that is the court. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.