Is it permissible in a profit-sharing partnership (mudarabah) for the two partners to agree on a specific period for selling the goods, such that when the period ends, they divide what has been sold, and what has not been sold...
Machine translationRead the Arabic original
The questioner: If a profit is realized, how much will it be? So we agreed in principle on an equal split.
The Shaykh: All right.
The questioner: ... The capital has its equivalent in profits, and for the others, the effort and the location. This new one has fifty percent, the other half.
The Shaykh : Yes.
The questioner: The question that arose now: Is it permissible to set a specific period? That is, we cannot give this amount—for example—we can give it to buy a specific deal, hoping it will be sold in two, three, or four months. He said after four or five months, we agree. If this deal is not sold to people, to people, then we, the new location, will record it on our books at prevailing prices... calculate it, and clear the side that provided the capital. So I stopped here and said to him, I want to ask. The man is the one we actually deal with, and he also knows people connected to you. So he said, I want to ask some of Shaykh Al-Albani's students. I said, who are they? He said to me, Abu Ubaydah. I said to him, by Allah, I do not know who Abu Ubaydah is?
The Shaykh : Who is he?
The questioner: Abu Ubaydah.
The Shaykh: Ah, this one might be well-known.
The questioner: Who is well-known?
The Shaykh: Yes.
The questioner: Who is well-known?
The Shaykh : Hmm.
The questioner: He mentioned a name that is not well-known, but I did not know who is well-known?
The Shaykh: This was a professor at the university, and then he left it, and now he is, so to speak, walking with us, and he is among the participants in publishing the magazine Al-Asalah.
The questioner : What Allah willed!
The Shaykh: Yes.
The questioner: So I said to him, O my master, we have the source.
The Shaykh : May Allah reward you.
The questioner: And I am speaking to Tahir now; I do not want to burden you, so I spoke to Tahir. He said to me, by Allah, he is our Shaykh at home. And I spoke to him just now, so I took the liberty of requesting you at this time.
The Shaykh : Welcome.
The questioner: So, O my master, is it permissible now, this question, that is, I now, when some funds become available from time to time, we cannot dedicate them... to this project according to the agreement we agreed upon, but we can lend them and buy with them shared goods and trade with them in a profit-sharing partnership (mudarabah), we profit, we profit, we lose, we lose. But the question is, is it permissible to set a specific period?
The Shaykh: By Allah, the truth is, regarding the first topic, I was fully bent on understanding it, and I felt that I understood it.
The questioner: And I also understood that you understood it and learned something new.
The Shaykh: Yes, may Allah reward you with good. As for this new situation, it has not become clear to me?
The questioner: Okay, clarify it again if you have no objection.
The Shaykh: You can add more clarification.
The questioner : O my master.
The Shaykh : Hmm.
The questioner: Now, this project will be...
The Shaykh: What kind of project?
The questioner: The one we understood.
The Shaykh: All right.
The questioner: This project sometimes requires more than sixty thousand dinars.
The Shaykh: All right.
The questioner: That is, with him, I go down to Beirut or to Sham and find an excellent deal, I find secured goods.
The Shaykh: All right.
The questioner: He needs to buy it, but he has no liquidity, he has no money.
The Shaykh : Yes, yes.
The questioner: So he will resort to Al-Saraya.
The Shaykh: He will resort to what?
The questioner: To us, the Al-Saraya company.
The Shaykh : Yes.
The questioner: The second.
The Shaykh: Yes, yes.
The questioner: And he says, O my uncle, give me, I need ten thousand dinars to buy goods.
The Shaykh : Yes.
The questioner: So we want you to enter with us as a profit-sharing partner (mudarib) for this specific deal, in exchange for you providing the capital. We, so to speak, give him the money.
The Shaykh : Yes.
The questioner: And he buys the goods in the name of the new location.
The Shaykh: So it is not the profit-sharing partnership, it is the profit-sharing partner (mudarib).
The questioner: No, no, the company.
The Shaykh: The company with the capital.
The questioner: No, my master, now it has become a company. Let us now distinguish between two things.
The Shaykh : Yes.
The questioner: The new company that was formed with a one-third share for each side.
The Shaykh : Yes, exactly.
The questioner: Al-Saraya, which I am currently working in, which you know, is a partner with a one-third share in the new location. The new location, so that we can bring it closer, so we can say... call it "The Elegant House."
The Shaykh: Yes.
The questioner: This "Elegant House" will need money from time to time.
The Shaykh: Yes.
The questioner: So it will resort to Al-Saraya.
The Shaykh : Yes.
The questioner: Al-Saraya has money.
The Shaykh : Yes.
The questioner: Al-Saraya is a partner in this location, "The Elegant House," with a one-third share.
The Shaykh: Perfect.
The questioner: So it does not want to return to participate and increase its capital in the partnership.
The Shaykh : Yes, exactly.
The questioner: If money becomes available to it, "The Elegant House" will need to take this money to buy a deal.
The Shaykh: From Al-Saraya.
The questioner: Yes.
The Shaykh: All right.
The questioner: ... Al-Saraya gives him the money to buy this deal and enters into a partnership, and the agreement was that they enter into a partnership for profit or loss, fifty percent, on this specific deal, meaning they bought, for example, lamps.
The Shaykh: Yes.
The questioner: For ten thousand dinars. This specific deal enters into the books of the location, but not into the partnership. It enters as a temporary deal, to be sold, and once it is sold, its operations are settled and divided equally, whether profit or loss.
The Shaykh: The one selling is "The Elegant House."
The questioner: "The Elegant House."
The Shaykh: All right.
The questioner: Now, "The Elegant House" says that we now need to set a date for you. We buy this deal and say that this deal, we will sell it within three or four months.
The Shaykh: Yes.
The questioner: And Al-Saraya enters with this money on the basis that it will be sold within three or four months.
The Shaykh: All right.
The questioner: The question I am referring to: suppose it is not sold within four months.
The Shaykh: Yes.
The questioner: ... "The Elegant House" buys it for itself and records the remainder as a debt on it, or that he pays and buys, pays and returns to Al-Saraya its money with the profit realized or the loss realized.
The Shaykh : Yes.
The questioner: Is this permissible? I hesitated and stopped here?
The Shaykh : Yes.
The questioner: That is, is it permissible to stipulate a period?
The Shaykh: Okay, the agreed division after the expiration of the period?
The questioner: Yes, my master, if it is permissible to agree on a period, then it is after the period, and if... before the period, before the period.
The Shaykh: The hypothesis is like this now, meaning we set the period to three months.
The questioner: Yes.
The Shaykh: All right.
The questioner: If the goods are sold within a month, the division is completed.
The Shaykh: Ah, so the division is completed after the goods are sold.
The questioner: Yes.
The Shaykh: Whether after half a month, or a month, or two months, or three.
The questioner: Ah, provided that it does not exceed the agreed period.
The Shaykh: No problem, allow me to try my luck. Did I understand or not?
The questioner: Yes, my master.
The Shaykh: The division takes place after half a month if it is sold.
The questioner: Yes.
The Shaykh: Or a month, or two months, or three.
The questioner: Yes.
The Shaykh: At most, for example, three.
The questioner: Or four or five, it is not important.
The Shaykh: For example, for example, may Allah bless you.
The questioner : Yes, yes.
The Shaykh: So I will say now, this division, we do not have a stop at it, but the reverse now, if the sale is not completed, for example, half is sold.
The questioner: Yes.
The Shaykh: And half remains.
The questioner: Yes.
The Shaykh: Half is sold by the third month, which is the last month.
The questioner: Yes.
The Shaykh: Is the profit given to the owner of the capital, or how?
The questioner: No, the half that was sold.
The Shaykh : Yes.
The questioner: It is recorded, what is yours and what is mine, is given equally according to the agreement. The remaining half.
The Shaykh: Excuse me, excuse me, step by step.
The questioner: Yes.
The Shaykh: Now we are talking about the first half.
The questioner: The first half.
The Shaykh: The one that made a profit.
The questioner: Yes, the one that made a profit.
The Shaykh: You are saying, in banking or exchange terminology, it is recorded, what does that mean?
The questioner: ... The result of the operations, loss or profit.
The Shaykh: O Abu Yahya, we are saying three months have passed, the final set limit.
The questioner: Yes.
The Shaykh: And half of the goods were sold, and we have its profit.
The questioner: Yes.
The Shaykh: This profit, you told me, is recorded. What do you mean?
The questioner: No, the word "this profit" means it is known how much is counted.
The Shaykh: I did not know, I know.
The questioner: I know now, it is distributed to both parties.
The Shaykh: So, the other half of the goods that was not sold remains.
The questioner: Yes.
The Shaykh: Your question now applies to this second half.
The questioner: Yes.
The Shaykh: The one that was not sold.
The questioner: The one that was not sold.
The Shaykh : Correct.
The questioner: Yes.
The Shaykh: So we are done with the first half that was sold.
The questioner: The one that was sold, it is done, each person took his share.
The Shaykh : Okay.
The questioner: Yes.
The Shaykh: So what is the supposed agreement now for the second half?
The questioner: Now, the second half, "The Elegant House" records this, buys and takes this goods, bears it, saying if it is not sold within the three months, I will buy it.
The Shaykh: Okay, he buys it at a fixed price.
The questioner: No, he needs to buy it at the customary price that is agreed upon, or at the price it is sold for according to how it is sold in the market, so he becomes obligated to buy the goods.
The Shaykh: This needs to be specified, because for example, Al-Saraya, the lender, if the value of the half or the capital is five thousand.
The questioner: Yes.
The Shaykh: And he asks for ten thousand, presumably you will not agree. What is this that will resolve the dispute? You say, the market price.
The questioner: Yes.
The Shaykh : So, do you have a market price for the goods you brought in?
The questioner : It would be, sir, the average selling price of the goods that were sold out.
The Shaykh : Okay, so the goods...
The questioner : The goods that were sold out, fifty percent, twenty percent, thirty percent, are sold normally, for example, at an average of such-and-such.
The Shaykh : But I don't think you sell these goods at a single price.
The questioner : Exactly, we take the average.
The Shaykh : Yes, good. So, is this condition established?
The questioner : No, I am currently stopping with you to ask you.
The Shaykh : Yes.
The questioner : I mean, if the idea is permissible, I had doubts about it. If the idea is permissible, we find solutions; it is not a problem. We agree that it is sold at its capital plus such-and-such, or sold at its capital minus such-and-such, it is not a problem. It is sold at the average or mean of previous sales; we find a solution for it.
The Shaykh : I have no objection if you establish the specified conditions that prevent a dispute from arising between the partners, one with his capital and the other with his effort.
The questioner: Yes.
The Shaykh : Therefore, I suggest that you may proceed with this agreement, but on the condition that, from my side, you clarify to me the conditions you agreed upon regarding the second half.
The questioner: Yes.
The Shaykh : Is that clear?
The questioner: Yes, my master.
The Shaykh : May Allah reward you.
The questioner : I am writing because...
The Shaykh : Yes, may Allah reward you with good.
The questioner : Excuse me, I need to burden you for two more minutes.
The Shaykh : You have burdened me, Abu Yahya, at your ease.
The questioner : Sir, what do you see? What conditions do you consider necessary and appropriate for these mudarabah contracts? I mean, give me what you believe to be the correct ruling of the Shari'ah regarding mudarabah contracts.
The Shaykh : By Allah, I think this is a difficult question to answer.
The questioner : Based on the ruling of the Shari'ah.
The Shaykh : If you allow me, it is difficult to answer because the matter may differ from one partnership to another. But I say, for example, to resolve a dispute that may arise regarding the second half, is it not possible to agree, for example, that if the second half of the mudarabah partnership, which is the Elegant House, is not sold, we buy this remainder, whether it is a half, a quarter, or more or less?
The questioner: Yes.
The Shaykh : At a profit of such-and-such percent, this is possible.
The questioner : It is possible. But why is it not possible for the reverse, that they buy it at a profit of such-and-such? We see how much it cost and add such-and-such to it.
The Shaykh : No, may Allah reward you. I am giving an example. I am giving an example.
The questioner: Yes.
The Shaykh : So, for example, you reverse my example. It does not matter to me as long as you agree.
The questioner : So, sir, this is a solution.
The Shaykh : The important thing is that you agree.
The questioner : We agree, if you allow me.
The Shaykh : The important thing is that you agree on a percentage.
The questioner : Yes, that either of the two parties has the option to buy the goods at their cost plus, for example, fifteen percent.
The Shaykh : Hmm.
The questioner: It is possible.
The Shaykh: It is possible.
The questioner : You have solved it.
The Shaykh : That is it.
The questioner : So, sir, I have now received the fatwa. We agree on the duration. After this duration, whatever is sold is divided, and whatever remains, the option is given to either of the partners, whether the mudarib or the capital partner, to buy it at the cost plus a certain percentage.
The Shaykh : That is it.
The questioner : And Allah is the Knower of the unseen.
The Shaykh : That is it.
The questioner : Now, return to the old combination. You see that after the expiration of the three years of the old partnership...
The Shaykh: Yes.
The questioner : That the percentage does not suffice in the case where the man loses, so he may have lost his work.
The Shaykh: Yes.
The questioner : So, you see that we should specify an amount.
The Shaykh: Yes.
The questioner : Its percentage is, for example, forty percent, provided there is a profit. And if there is no profit, he is compensated for his effort with an amount of such-and-such. Is this permissible?
The Shaykh : I do not want to say forty percent.
The questioner : No, I mean the agreed-upon percentage.
The Shaykh : The capital partner is no different from the others.
The questioner: Yes.
The Shaykh : This is one thing, but he differs from the others in that, in addition to his capital...
The questioner : He has his effort.
The Shaykh : He has his effort. This effort determines his wage, whether in the first three years or in what follows after them.
The questioner : So, you do not see that the wage must not differ before...
The Shaykh : Yes, because I fear that it would be exploiting the man's need for a benevolent loan.
The questioner : By Allah, sir, you have spoken the truth. By Allah, you have alerted me to something I was unaware of. I wanted to say that the shop gave him an opportunity to increase his capital, so he bears its consequences, and...
The Shaykh : This is riba, may Allah reward you.
The questioner: There is no power nor strength except with Allah.
The Shaykh : Yes, exactly.
The questioner : May Allah reward you with good, my master.
The Shaykh : And you, my brother, welcome.
The questioner : Goodbye, sir.
The Shaykh: Peace be upon you.
The questioner : May Allah honor you, O Lord.
The Shaykh: Yes.
The questioner : I am writing my doctoral dissertation here in... on Shaykh al-Islam Ibn Taymiyyah.
The Shaykh: Yes.
The questioner : And I want to ask you, is it possible for me to send you a message asking many things about Ibn Taymiyyah?
The Shaykh : You can send it, but I cannot answer.
The questioner : Yes.
The Shaykh : Perhaps you understood me.
The questioner : The connection is very bad.
The Shaykh : I say you can send it to me, but I cannot send you an answer to what you asked and wrote. Perhaps you heard me now.
The questioner : Ah.
The Shaykh : Perhaps you heard me. I say, did you hear?
The questioner : Yes, yes. Can I call you again by phone?
The Shaykh : You can call every day at this time, until two hours after this time every night.
The questioner : Thank you very much. May Allah reward you with good.
The Shaykh : And may Allah protect you, if Allah wills.
The questioner : I will call you.
The Shaykh : Welcome and welcome.
The Shaykh: All right.
The questioner: ... The capital has its equivalent in profits, and for the others, the effort and the location. This new one has fifty percent, the other half.
The Shaykh : Yes.
The questioner: The question that arose now: Is it permissible to set a specific period? That is, we cannot give this amount—for example—we can give it to buy a specific deal, hoping it will be sold in two, three, or four months. He said after four or five months, we agree. If this deal is not sold to people, to people, then we, the new location, will record it on our books at prevailing prices... calculate it, and clear the side that provided the capital. So I stopped here and said to him, I want to ask. The man is the one we actually deal with, and he also knows people connected to you. So he said, I want to ask some of Shaykh Al-Albani's students. I said, who are they? He said to me, Abu Ubaydah. I said to him, by Allah, I do not know who Abu Ubaydah is?
The Shaykh : Who is he?
The questioner: Abu Ubaydah.
The Shaykh: Ah, this one might be well-known.
The questioner: Who is well-known?
The Shaykh: Yes.
The questioner: Who is well-known?
The Shaykh : Hmm.
The questioner: He mentioned a name that is not well-known, but I did not know who is well-known?
The Shaykh: This was a professor at the university, and then he left it, and now he is, so to speak, walking with us, and he is among the participants in publishing the magazine Al-Asalah.
The questioner : What Allah willed!
The Shaykh: Yes.
The questioner: So I said to him, O my master, we have the source.
The Shaykh : May Allah reward you.
The questioner: And I am speaking to Tahir now; I do not want to burden you, so I spoke to Tahir. He said to me, by Allah, he is our Shaykh at home. And I spoke to him just now, so I took the liberty of requesting you at this time.
The Shaykh : Welcome.
The questioner: So, O my master, is it permissible now, this question, that is, I now, when some funds become available from time to time, we cannot dedicate them... to this project according to the agreement we agreed upon, but we can lend them and buy with them shared goods and trade with them in a profit-sharing partnership (mudarabah), we profit, we profit, we lose, we lose. But the question is, is it permissible to set a specific period?
The Shaykh: By Allah, the truth is, regarding the first topic, I was fully bent on understanding it, and I felt that I understood it.
The questioner: And I also understood that you understood it and learned something new.
The Shaykh: Yes, may Allah reward you with good. As for this new situation, it has not become clear to me?
The questioner: Okay, clarify it again if you have no objection.
The Shaykh: You can add more clarification.
The questioner : O my master.
The Shaykh : Hmm.
The questioner: Now, this project will be...
The Shaykh: What kind of project?
The questioner: The one we understood.
The Shaykh: All right.
The questioner: This project sometimes requires more than sixty thousand dinars.
The Shaykh: All right.
The questioner: That is, with him, I go down to Beirut or to Sham and find an excellent deal, I find secured goods.
The Shaykh: All right.
The questioner: He needs to buy it, but he has no liquidity, he has no money.
The Shaykh : Yes, yes.
The questioner: So he will resort to Al-Saraya.
The Shaykh: He will resort to what?
The questioner: To us, the Al-Saraya company.
The Shaykh : Yes.
The questioner: The second.
The Shaykh: Yes, yes.
The questioner: And he says, O my uncle, give me, I need ten thousand dinars to buy goods.
The Shaykh : Yes.
The questioner: So we want you to enter with us as a profit-sharing partner (mudarib) for this specific deal, in exchange for you providing the capital. We, so to speak, give him the money.
The Shaykh : Yes.
The questioner: And he buys the goods in the name of the new location.
The Shaykh: So it is not the profit-sharing partnership, it is the profit-sharing partner (mudarib).
The questioner: No, no, the company.
The Shaykh: The company with the capital.
The questioner: No, my master, now it has become a company. Let us now distinguish between two things.
The Shaykh : Yes.
The questioner: The new company that was formed with a one-third share for each side.
The Shaykh : Yes, exactly.
The questioner: Al-Saraya, which I am currently working in, which you know, is a partner with a one-third share in the new location. The new location, so that we can bring it closer, so we can say... call it "The Elegant House."
The Shaykh: Yes.
The questioner: This "Elegant House" will need money from time to time.
The Shaykh: Yes.
The questioner: So it will resort to Al-Saraya.
The Shaykh : Yes.
The questioner: Al-Saraya has money.
The Shaykh : Yes.
The questioner: Al-Saraya is a partner in this location, "The Elegant House," with a one-third share.
The Shaykh: Perfect.
The questioner: So it does not want to return to participate and increase its capital in the partnership.
The Shaykh : Yes, exactly.
The questioner: If money becomes available to it, "The Elegant House" will need to take this money to buy a deal.
The Shaykh: From Al-Saraya.
The questioner: Yes.
The Shaykh: All right.
The questioner: ... Al-Saraya gives him the money to buy this deal and enters into a partnership, and the agreement was that they enter into a partnership for profit or loss, fifty percent, on this specific deal, meaning they bought, for example, lamps.
The Shaykh: Yes.
The questioner: For ten thousand dinars. This specific deal enters into the books of the location, but not into the partnership. It enters as a temporary deal, to be sold, and once it is sold, its operations are settled and divided equally, whether profit or loss.
The Shaykh: The one selling is "The Elegant House."
The questioner: "The Elegant House."
The Shaykh: All right.
The questioner: Now, "The Elegant House" says that we now need to set a date for you. We buy this deal and say that this deal, we will sell it within three or four months.
The Shaykh: Yes.
The questioner: And Al-Saraya enters with this money on the basis that it will be sold within three or four months.
The Shaykh: All right.
The questioner: The question I am referring to: suppose it is not sold within four months.
The Shaykh: Yes.
The questioner: ... "The Elegant House" buys it for itself and records the remainder as a debt on it, or that he pays and buys, pays and returns to Al-Saraya its money with the profit realized or the loss realized.
The Shaykh : Yes.
The questioner: Is this permissible? I hesitated and stopped here?
The Shaykh : Yes.
The questioner: That is, is it permissible to stipulate a period?
The Shaykh: Okay, the agreed division after the expiration of the period?
The questioner: Yes, my master, if it is permissible to agree on a period, then it is after the period, and if... before the period, before the period.
The Shaykh: The hypothesis is like this now, meaning we set the period to three months.
The questioner: Yes.
The Shaykh: All right.
The questioner: If the goods are sold within a month, the division is completed.
The Shaykh: Ah, so the division is completed after the goods are sold.
The questioner: Yes.
The Shaykh: Whether after half a month, or a month, or two months, or three.
The questioner: Ah, provided that it does not exceed the agreed period.
The Shaykh: No problem, allow me to try my luck. Did I understand or not?
The questioner: Yes, my master.
The Shaykh: The division takes place after half a month if it is sold.
The questioner: Yes.
The Shaykh: Or a month, or two months, or three.
The questioner: Yes.
The Shaykh: At most, for example, three.
The questioner: Or four or five, it is not important.
The Shaykh: For example, for example, may Allah bless you.
The questioner : Yes, yes.
The Shaykh: So I will say now, this division, we do not have a stop at it, but the reverse now, if the sale is not completed, for example, half is sold.
The questioner: Yes.
The Shaykh: And half remains.
The questioner: Yes.
The Shaykh: Half is sold by the third month, which is the last month.
The questioner: Yes.
The Shaykh: Is the profit given to the owner of the capital, or how?
The questioner: No, the half that was sold.
The Shaykh : Yes.
The questioner: It is recorded, what is yours and what is mine, is given equally according to the agreement. The remaining half.
The Shaykh: Excuse me, excuse me, step by step.
The questioner: Yes.
The Shaykh: Now we are talking about the first half.
The questioner: The first half.
The Shaykh: The one that made a profit.
The questioner: Yes, the one that made a profit.
The Shaykh: You are saying, in banking or exchange terminology, it is recorded, what does that mean?
The questioner: ... The result of the operations, loss or profit.
The Shaykh: O Abu Yahya, we are saying three months have passed, the final set limit.
The questioner: Yes.
The Shaykh: And half of the goods were sold, and we have its profit.
The questioner: Yes.
The Shaykh: This profit, you told me, is recorded. What do you mean?
The questioner: No, the word "this profit" means it is known how much is counted.
The Shaykh: I did not know, I know.
The questioner: I know now, it is distributed to both parties.
The Shaykh: So, the other half of the goods that was not sold remains.
The questioner: Yes.
The Shaykh: Your question now applies to this second half.
The questioner: Yes.
The Shaykh: The one that was not sold.
The questioner: The one that was not sold.
The Shaykh : Correct.
The questioner: Yes.
The Shaykh: So we are done with the first half that was sold.
The questioner: The one that was sold, it is done, each person took his share.
The Shaykh : Okay.
The questioner: Yes.
The Shaykh: So what is the supposed agreement now for the second half?
The questioner: Now, the second half, "The Elegant House" records this, buys and takes this goods, bears it, saying if it is not sold within the three months, I will buy it.
The Shaykh: Okay, he buys it at a fixed price.
The questioner: No, he needs to buy it at the customary price that is agreed upon, or at the price it is sold for according to how it is sold in the market, so he becomes obligated to buy the goods.
The Shaykh: This needs to be specified, because for example, Al-Saraya, the lender, if the value of the half or the capital is five thousand.
The questioner: Yes.
The Shaykh: And he asks for ten thousand, presumably you will not agree. What is this that will resolve the dispute? You say, the market price.
The questioner: Yes.
The Shaykh : So, do you have a market price for the goods you brought in?
The questioner : It would be, sir, the average selling price of the goods that were sold out.
The Shaykh : Okay, so the goods...
The questioner : The goods that were sold out, fifty percent, twenty percent, thirty percent, are sold normally, for example, at an average of such-and-such.
The Shaykh : But I don't think you sell these goods at a single price.
The questioner : Exactly, we take the average.
The Shaykh : Yes, good. So, is this condition established?
The questioner : No, I am currently stopping with you to ask you.
The Shaykh : Yes.
The questioner : I mean, if the idea is permissible, I had doubts about it. If the idea is permissible, we find solutions; it is not a problem. We agree that it is sold at its capital plus such-and-such, or sold at its capital minus such-and-such, it is not a problem. It is sold at the average or mean of previous sales; we find a solution for it.
The Shaykh : I have no objection if you establish the specified conditions that prevent a dispute from arising between the partners, one with his capital and the other with his effort.
The questioner: Yes.
The Shaykh : Therefore, I suggest that you may proceed with this agreement, but on the condition that, from my side, you clarify to me the conditions you agreed upon regarding the second half.
The questioner: Yes.
The Shaykh : Is that clear?
The questioner: Yes, my master.
The Shaykh : May Allah reward you.
The questioner : I am writing because...
The Shaykh : Yes, may Allah reward you with good.
The questioner : Excuse me, I need to burden you for two more minutes.
The Shaykh : You have burdened me, Abu Yahya, at your ease.
The questioner : Sir, what do you see? What conditions do you consider necessary and appropriate for these mudarabah contracts? I mean, give me what you believe to be the correct ruling of the Shari'ah regarding mudarabah contracts.
The Shaykh : By Allah, I think this is a difficult question to answer.
The questioner : Based on the ruling of the Shari'ah.
The Shaykh : If you allow me, it is difficult to answer because the matter may differ from one partnership to another. But I say, for example, to resolve a dispute that may arise regarding the second half, is it not possible to agree, for example, that if the second half of the mudarabah partnership, which is the Elegant House, is not sold, we buy this remainder, whether it is a half, a quarter, or more or less?
The questioner: Yes.
The Shaykh : At a profit of such-and-such percent, this is possible.
The questioner : It is possible. But why is it not possible for the reverse, that they buy it at a profit of such-and-such? We see how much it cost and add such-and-such to it.
The Shaykh : No, may Allah reward you. I am giving an example. I am giving an example.
The questioner: Yes.
The Shaykh : So, for example, you reverse my example. It does not matter to me as long as you agree.
The questioner : So, sir, this is a solution.
The Shaykh : The important thing is that you agree.
The questioner : We agree, if you allow me.
The Shaykh : The important thing is that you agree on a percentage.
The questioner : Yes, that either of the two parties has the option to buy the goods at their cost plus, for example, fifteen percent.
The Shaykh : Hmm.
The questioner: It is possible.
The Shaykh: It is possible.
The questioner : You have solved it.
The Shaykh : That is it.
The questioner : So, sir, I have now received the fatwa. We agree on the duration. After this duration, whatever is sold is divided, and whatever remains, the option is given to either of the partners, whether the mudarib or the capital partner, to buy it at the cost plus a certain percentage.
The Shaykh : That is it.
The questioner : And Allah is the Knower of the unseen.
The Shaykh : That is it.
The questioner : Now, return to the old combination. You see that after the expiration of the three years of the old partnership...
The Shaykh: Yes.
The questioner : That the percentage does not suffice in the case where the man loses, so he may have lost his work.
The Shaykh: Yes.
The questioner : So, you see that we should specify an amount.
The Shaykh: Yes.
The questioner : Its percentage is, for example, forty percent, provided there is a profit. And if there is no profit, he is compensated for his effort with an amount of such-and-such. Is this permissible?
The Shaykh : I do not want to say forty percent.
The questioner : No, I mean the agreed-upon percentage.
The Shaykh : The capital partner is no different from the others.
The questioner: Yes.
The Shaykh : This is one thing, but he differs from the others in that, in addition to his capital...
The questioner : He has his effort.
The Shaykh : He has his effort. This effort determines his wage, whether in the first three years or in what follows after them.
The questioner : So, you do not see that the wage must not differ before...
The Shaykh : Yes, because I fear that it would be exploiting the man's need for a benevolent loan.
The questioner : By Allah, sir, you have spoken the truth. By Allah, you have alerted me to something I was unaware of. I wanted to say that the shop gave him an opportunity to increase his capital, so he bears its consequences, and...
The Shaykh : This is riba, may Allah reward you.
The questioner: There is no power nor strength except with Allah.
The Shaykh : Yes, exactly.
The questioner : May Allah reward you with good, my master.
The Shaykh : And you, my brother, welcome.
The questioner : Goodbye, sir.
The Shaykh: Peace be upon you.
The questioner : May Allah honor you, O Lord.
The Shaykh: Yes.
The questioner : I am writing my doctoral dissertation here in... on Shaykh al-Islam Ibn Taymiyyah.
The Shaykh: Yes.
The questioner : And I want to ask you, is it possible for me to send you a message asking many things about Ibn Taymiyyah?
The Shaykh : You can send it, but I cannot answer.
The questioner : Yes.
The Shaykh : Perhaps you understood me.
The questioner : The connection is very bad.
The Shaykh : I say you can send it to me, but I cannot send you an answer to what you asked and wrote. Perhaps you heard me now.
The questioner : Ah.
The Shaykh : Perhaps you heard me. I say, did you hear?
The questioner : Yes, yes. Can I call you again by phone?
The Shaykh : You can call every day at this time, until two hours after this time every night.
The questioner : Thank you very much. May Allah reward you with good.
The Shaykh : And may Allah protect you, if Allah wills.
The questioner : I will call you.
The Shaykh : Welcome and welcome.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.