A man partnered with another in a commercial venture, one contributing capital and the other his effort and connections, and they agreed on this; after their success over two years, the intention changed
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The questioner : He says that he partnered with a colleague in a good commercial project. The first colleague paid the money. He says, "I contributed my effort, sweat, diligence, and connections. This is what we agreed upon, and each of us was satisfied with the work, the idea, and the project. Since he did not work with me, I am the one who manages the project, follows up, buys, and sells. As for him, as I mentioned, he does nothing. When we settle the profit every six months, it comes back to us, and he takes what we earned." He says: "But after our success and our lawful earnings over two years, the intention changed. He stated his request to take more than half of the profit, considering that he is a partner in the capital. I was confused because I did not write a document with him, due to his commitment and his religion. I ask the honorable Shaykh Muhammad al-Uthaymeen (may Allah preserve him and grant him piety) to guide me through the platform of Nur 'ala al-Dirb, as I will act upon this fatwa, if Allah wills. May Allah reward you with good?"
The Shaykh : The contract mentioned by our brother is a contract of mudarabah, and the contract of mudarabah is a Shari'ah contract. If the conditions for the validity of mudarabah apply to it, it becomes a valid contract.
Mudarabah is when one of the partners provides the capital and the other provides the work, as in this question. The profit is divided between them according to what they stipulated. They may stipulate that the profit is divided equally between them, or they may stipulate that the profit is divided into thirds, with one third for the worker and the rest for the owner of the capital, or the reverse.
The important point is that the distribution of the profit is according to what they stipulated. If they stipulated that the profit is divided equally between them, it is divided equally between them. If they stipulated otherwise, it is according to what they stipulated. This is based on the saying of Allah the Exalted:[Al-Ma'idah 5:1] The command to fulfill contracts includes the essence of the contract and its description, which is the conditions. And based on His saying the Exalted: [Al-Isra 17:34] The contract between the two parties is a covenant and a commitment from each of them to the other to what the contract requires.
However, the contract of mudarabah is among the permissible contracts, meaning that each of the contracting parties has the right to dissolve the contract, provided that there is no harm to the other. If the past six months were on the basis that the profit is divided equally between you, and then the owner of the capital requests that his share of the profit be more, he is free to do so, and you are also free. If you wish, agree to what he requested. If you wish, dissolve the partnership. If you separate with good intentions, I hope that Allah, the Sublime and Exalted, will enrich each of you from His abundance. If you remain with good intentions, it is established from the Prophet (peace and blessings be upon him and his family) that Allah said:Bulugh al-Maram 7:124
In summary, the answer is that the contract between you, if you wish, you continue with it on the first condition. If you wish, you modify the conditions according to your mutual agreement. If you wish, you dissolve the contract, because the contract of mudarabah is among the permissible contracts. Yes.
The questioner : He has a second question. He says, "Honorable Shaykh."
The Shaykh : The contract mentioned by our brother is a contract of mudarabah, and the contract of mudarabah is a Shari'ah contract. If the conditions for the validity of mudarabah apply to it, it becomes a valid contract.
Mudarabah is when one of the partners provides the capital and the other provides the work, as in this question. The profit is divided between them according to what they stipulated. They may stipulate that the profit is divided equally between them, or they may stipulate that the profit is divided into thirds, with one third for the worker and the rest for the owner of the capital, or the reverse.
The important point is that the distribution of the profit is according to what they stipulated. If they stipulated that the profit is divided equally between them, it is divided equally between them. If they stipulated otherwise, it is according to what they stipulated. This is based on the saying of Allah the Exalted:
O you who have believed, fulfill [all] contracts.
يَا أَيُّهَا الَّذِينَ ءامَنُوا أَوْفُوا بِالْعُقُودِAnd fulfill [every] commitment. Indeed, the commitment is ever [that about which one will be] questioned.
وَأَوْفُوا بِالْعَهْدِ إِنَّ الْعَهْدَ كَانَ مَسْؤولًاHowever, the contract of mudarabah is among the permissible contracts, meaning that each of the contracting parties has the right to dissolve the contract, provided that there is no harm to the other. If the past six months were on the basis that the profit is divided equally between you, and then the owner of the capital requests that his share of the profit be more, he is free to do so, and you are also free. If you wish, agree to what he requested. If you wish, dissolve the partnership. If you separate with good intentions, I hope that Allah, the Sublime and Exalted, will enrich each of you from His abundance. If you remain with good intentions, it is established from the Prophet (peace and blessings be upon him and his family) that Allah said:
I am the third (partner) of two partners as long as one of them does not cheat the his companion. Then, if he cheats (his partner) I depart from them.
أنا ثالث الشريكين ما لم يخُن أحدهما صاحبه، فإذا خان خرجت من بينهماIn summary, the answer is that the contract between you, if you wish, you continue with it on the first condition. If you wish, you modify the conditions according to your mutual agreement. If you wish, you dissolve the contract, because the contract of mudarabah is among the permissible contracts. Yes.
The questioner : He has a second question. He says, "Honorable Shaykh."
