Partnership in a farm where one party provides the capital and the other provides the labor
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Fatwa number ( 20488 )
Q: I partnered with three people in a farm, and we agreed that I would provide them with the capital and they would manage the work in it. I gave them two hundred thousand riyals as capital, and we agreed that the profit or loss would be divided into quarters: one quarter for me and one quarter for each of them. Is this agreement permissible? Please inform us; may Allah reward you and grant you His help and success.
A: This arrangement is called a partnership between you and them in the crops. You provide the money
and they provide the labor. Whatever yield is obtained is shared between you and them, each receiving his predetermined share in common according to what you agree upon. If nothing is obtained, you lose the money you paid, and they lose the labor they performed. They do not bear any of the loss of the money you paid if a loss occurs. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I partnered with three people in a farm, and we agreed that I would provide them with the capital and they would manage the work in it. I gave them two hundred thousand riyals as capital, and we agreed that the profit or loss would be divided into quarters: one quarter for me and one quarter for each of them. Is this agreement permissible? Please inform us; may Allah reward you and grant you His help and success.
A: This arrangement is called a partnership between you and them in the crops. You provide the money
and they provide the labor. Whatever yield is obtained is shared between you and them, each receiving his predetermined share in common according to what you agree upon. If nothing is obtained, you lose the money you paid, and they lose the labor they performed. They do not bear any of the loss of the money you paid if a loss occurs. 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.