What is the ruling on two people agreeing to partner in a large project, where one pays the project costs and the other repays his share?
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Question:
My friend and I partnered in a large project estimated to cost approximately 700,000 riyals. We agreed that my friend would pay the entire amount, and I would repay him from the project's own production. After that, the profits generated by the project would be split equally between us. What is the ruling on this?
Answer:
If the loan was made on the condition of partnership—that is, you are partnering—this is not permissible, because this is a loan that yields benefit. However, if he lent it to you without any condition, purely as a favor to you, and the partnership was part of the contract from the beginning, and he lent it to you when he saw that you were in need, then there is nothing wrong with it. And you are to follow what you agreed upon. Yes.
My friend and I partnered in a large project estimated to cost approximately 700,000 riyals. We agreed that my friend would pay the entire amount, and I would repay him from the project's own production. After that, the profits generated by the project would be split equally between us. What is the ruling on this?
Answer:
If the loan was made on the condition of partnership—that is, you are partnering—this is not permissible, because this is a loan that yields benefit. However, if he lent it to you without any condition, purely as a favor to you, and the partnership was part of the contract from the beginning, and he lent it to you when he saw that you were in need, then there is nothing wrong with it. And you are to follow what you agreed upon. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم اتفاق شخصين على الاشتراك في مشروع كبير على أن يدفع أحدهما تكاليف المشروع ثم يسدد الآخر نصيبه — youtube.com
The Arabic text is a machine transcription of the audio recording.