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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Three partners joined in opening a commercial establishment; two paid the full capital, with one-third of the capital being a debt on the third, to be paid from his share.

Machine translationRead the Arabic original
The questioner : ... And it seems to me, and Allah knows best, that we have a place called Al-Saraya.

The Shaykh: Yes.

The questioner : So we agreed with two others and opened a branch of this place. It is not a branch; we opened a new place, and we of Al-Saraya took one-third.

The Shaykh : Yes.

The questioner : And another one took one-third.

The Shaykh : Yes.

The questioner : We, the two of us, the two parties, paid the money.

The Shaykh : Yes.

The questioner : And the third partner joined us with his effort.

The Shaykh: Yes.

The questioner : He is the one who knows how to market and how to sell.

The Shaykh: Yes.

The questioner : And let us say the capital was, for example, sixty thousand dinars.

The Shaykh: Yes.

The questioner : We two paid the sixty thousand, thirty thousand each.

The Shaykh: Yes.

The questioner : And we considered ten thousand and ten thousand as a debt on each of us.

The Shaykh : Ten thousand, what?

The questioner : Now the share is twenty thousand, twenty thousand, twenty thousand.

The Shaykh : Yes.

The questioner : So we told him, we will lend you these twenty thousand. You do not have to pay it.

The Shaykh : Yes.

The questioner : And we, from here for three years, from the profits of the place.

The Shaykh : Yes.

The questioner : The profits of the place will pay off this share, but at the same time, every month we will give you a salary of three hundred dinars.

The Shaykh : Excuse me, Abu Yahya, now.

The questioner : I, all this, my sir, is an introduction to my question.

The Shaykh : So we wait?

The questioner : Yes, so this is not my question.

The Shaykh: All right, go ahead.

The questioner : He does not have capital.

The Shaykh : I mean, I understand the matter well, even so.

The questioner : No, that is fine. I mean, he does not have capital; he has knowledge of the market.

The Shaykh : And why were you saying we are lending him twenty thousand?

The questioner: Yes.

The Shaykh : Why are you saying we are lending him twenty thousand?

The questioner : Because he, now, if he had capital, he would pay like us, and he would take a wage for his effort.

The Shaykh : Understood, Abu Yahya, but you understood me at first that the capital is from you and your partner and the third one’s effort and toil.

The questioner : No, now it is as follows.

The Shaykh : Yes.

The questioner : His effort and toil.

The Shaykh: All right.

The questioner : So it will be in exchange for... the fact that he does not have capital.

The Shaykh: All right.

The questioner : And he has this effort, so now we have three shares, each share twenty thousand, twenty thousand, twenty thousand. His share is the twenty thousand.

The Shaykh : Yes.

The questioner : He does not have it to pay.

The Shaykh: Yes.

The questioner : So we told him, forget it, you do not pay it. We will pay, each of us ten thousand, ten thousand, we will pay for you.

The Shaykh : Yes.

The questioner : And then, what profits come out of the place? Your share, what profits come out for you? You start paying off from your share, but until the date you pay it off, we will calculate for you a monthly salary of three hundred and fifty dinars for your toil.

The Shaykh : Okay, and after the payment.

The questioner : After the payment, he becomes a partner in the one-third... fully.

The Shaykh : Meaning his share becomes like the shares of the other partners.

The questioner : His share is like the shares of the other partners, but he did not pay it. The place, he is the capital, he is the one who fed it, meaning it was paid off from the profits in the place.

The Shaykh : I understand, but I see that this is not successful, because in exchange for his work, after he pays off what is on him.

The questioner: Yes.

The Shaykh : He will take what you take.

The questioner : After paying off the share.

The Shaykh : Yes, paying off the debt that you lent him.

The questioner: Yes.

The Shaykh : He will take what you take, and you take what he takes, is that not so?

The questioner : This is after the three years.

The Shaykh : I say after the payment.

The questioner: Yes.

The Shaykh: All right.

The questioner: Yes.

The Shaykh : Yes, here there is a type of injustice, or it became a loan that brought benefit.

The questioner : A loan that brought benefit; the benefit it brought is truly for him, because he saved capital, or he took the one-third without meaning that this statement would be the case if he were not taking a salary during the three years. But during the three years, he was taking a salary.

The Shaykh : Yes, Abu Yahya, but you are saying it brought benefit to him; the benefit is.

The questioner : That he obtained capital after three years. It may have become two from twenty, but it became.

The Shaykh : This is bringing benefit. This is a very clear matter.

The questioner : Bringing benefit to whom?

The Shaykh : To this third partner who does not have capital.

The questioner: Yes.

The Shaykh : It brought benefit to him first.

The questioner: Yes.

The Shaykh : Then it brought benefit to the other two partners after three years. What he takes as profit from his first partner, who did not have capital, he benefits from his actual efforts.

The questioner : Yes, later.

The Shaykh : Ah, and we are sitting with our legs crossed, where is the justice here?

The questioner : You do not see justice here.

The Shaykh : No, by Allah.

The questioner : Where do you see justice? How can it be just?

The Shaykh : I see that you assume a person you lent to for the sake of Allah, so that he equals you in capital.

The questioner: Yes.

The Shaykh : Okay.

The questioner: Yes.

The Shaykh : Okay, so now when he received the loan from you, and it is supposed, and it must be that this supposed thing is real, that he is a partner with you in capital.

The questioner: Yes.

The Shaykh : Is that not so?

The questioner: Yes.

The Shaykh: All right.

The questioner : Yes, he, my sir, excuse me, from this moment he is registered as a partner in capital, because the company was registered in the names of the three.

The Shaykh : Allow me, Abu Yahya, allow me, let me finish.

The questioner: Yes.

The Shaykh : Now, this man, you lent him the one-third so that you three became partners.

The questioner: Yes.

The Shaykh : Equal in capital, correct?

The questioner: Yes.

The Shaykh : Okay, but he now, and until now, distinguishes himself from you by work.

The questioner: Yes.

The Shaykh : Yes, in exchange for this work, he must take a commission, he must take a wage.

The questioner : Yes, sir, I swear by Allah, Glorified is Allah, that you are astute, and by the life of Allah, I forgot to tell you something.

The Shaykh: Go ahead.

The questioner : We, now, this point is very important, Glorified is Allah, how you are wise and astute. We, now, our direction during the three years.

The Shaykh : Yes.

The questioner : The profits and losses are by the amount of one-third.

The Shaykh : Meaning they are equal, meaning.

The questioner: Yes.

The Shaykh: All right.

The questioner : After the three years are finished, we gave him a choice. We said either he stays taking the salary and his share of profits is by the amount of one-third, or his share becomes forty percent of the profit. He chose the forty percent, meaning after paying off the debt.

The Shaykh : Yes.

The questioner : We stop paying the three hundred and fifty dinars, and his profits are no longer one-third; he will take forty percent of the profits.

The Shaykh : Yes.

The questioner : So the previous one, which is ten percent, is in exchange for his effort.

The Shaykh : Yes.

The questioner : Meaning he takes ten percent in exchange for his effort by agreement, and then what remains is distributed equally among the three.

The Shaykh : Okay, ten percent plus thirty, you want to say.

The questioner : Yes, his share in the profits, whatever it is, which is one-third, plus he takes ten percent. Meaning he takes ten percent of the profits in exchange for his toil, and the fixed salary stops. Of course, the estimate is that the ten percent is better than the salary.

The Shaykh : Okay, why did you say you, forty percent?

The questioner : No, sorry, it is one-third plus ten percent.

The Shaykh : Hmm.

The questioner : Meaning in this sense.

The Shaykh : Yes.

The questioner : Meaning you now reminded me with your astuteness, you reminded me.

The Shaykh: Excuse me.

The questioner : You reminded me how the agreement became that after the payment is completed, the salary stops and he takes a higher percentage of the profits.

The Shaykh : So do I understand now that you lent him like what you paid?

The questioner: Yes.

The Shaykh : Okay, and at the same time, you made for him a wage.

The questioner : Monthly.

The Shaykh : In exchange for doing his work.

The questioner : Yes, whether the project profits or not?

The Shaykh : Very good.

The questioner: Yes.

The Shaykh : Until when?

The questioner : Until three years. And the three years, during the three years, he pays off not from his own money, but from the profits that come from this project. He pays off from his share of the profits.

The Shaykh : Okay, here a possibility arises, we hope it does not happen.

The questioner : Yes, if after three years he could not.

The Shaykh : Excuse me, excuse me, let me finish my speech.

The questioner: Yes, my master.

The Shaykh : A possibility arises, I said, I hope it does not happen.

The questioner: Yes.

The Shaykh : In case the project did not profit.

The questioner : It did not profit, we want to keep bearing it.

The Shaykh : Meaning you bear his delay in paying.

The questioner : Yes, because after three years, if we agreed that after three years, if he cannot pay off his share from the profits, we sit again and extend.

The Shaykh : Okay, so if the project succeeds as we hope.

The questioner : He will have paid off his share from his profits.

The Shaykh: All right.

The questioner : Now, the profits, we in the three years, each one takes by the amount of one-third.

The Shaykh: Perfect.

The questioner : After the four years, after the three years, the percentage changes.

The Shaykh : Yes.

The questioner : So he takes forty percent of the profits, or forty-five, meaning different from the old combination, meaning he takes ten percent.

The Shaykh : Meaning the increase is in exchange for his effort.

The questioner : In exchange for his effort, instead of the fixed salary.

The Shaykh : In the sense, let us assume now that after he cleared his debt, may Allah forbid, the project did not profit a single qirsh.

The questioner : He does not take according to the new arrangement.

The Shaykh : No, please allow me. May Allah bless you. I want to give the answer, and you will agree or not.

The questioner: Yes.

The Shaykh : No, may Allah forbid it. If the project does not succeed in one or two years, may Allah forbid it, do not repeat it, because the intention is...

The questioner : Yes, yes.

The Shaykh : ...clarification.

The questioner: Yes.

The Shaykh : He is taking a salary. What is the salary he takes if the project does not make a profit?

The questioner : Three hundred and fifty dinars, or four hundred; I do not remember, but I think it is four hundred dinars.

The Shaykh : That is, the fixed wage for him in the first three years is going well, and after that, it is more.

The questioner : No, sir, no.

The Shaykh : And then?

The questioner : After he pays it off?

The Shaykh : Yes, after he pays it off.

The questioner : After he pays it off, the salary of four hundred dinars stops.

The Shaykh : My dear, I understand that it stops, but I am assuming after the first three years, when he has paid his debt and the partnership has continued.

The questioner: Yes.

The Shaykh : He is a partner with you in one-third of the capital.

The questioner: Yes.

The Shaykh : And a partner in his effort, correct?

The questioner: Yes.

The Shaykh : Fine, but this capital did not make a profit, and he worked.

The questioner : Yes.

The Shaykh : So, in return for his work, what does he take?

The questioner : If it does not make a profit in the fourth year, he takes nothing.

The Shaykh : Yes, here there is injustice; there is injustice here.

The questioner : Because he chose to have his salary be a percentage of the profits.

The Shaykh : Let me, Abu Yahya, may Allah bless you, let me, and walk with me step by step, as we have learned and as we have taught you, scientific research requires extreme precision.

The questioner: Yes.

The Shaykh : So now something has become clear: the man may reach the fourth and fifth year, working with all his effort and time,

The questioner : and not making a profit,

The Shaykh : and not taking anything.

The questioner : So here, he has been wronged.

The Shaykh : Yes, may Allah bless you, and therefore you are studying this aspect.

The questioner : So, are you leaning toward him continuing to take the salary?

The Shaykh : Either he...

The questioner : or...

The Shaykh : less or more, according to what you agree upon.

The questioner: Yes.

The Shaykh : The important thing is that it is for his effort.

The questioner : That is, you do not consider that providing him the opportunity to work with capital from this place, even though he did not participate with capital, is a cover-up and justified in that later...

The Shaykh : Oh Abu Yahya, this is what I feared, this is what I feared: "Perhaps what you feared was that we are returning to Allah." I said to myself, then I expressed it in my words: I fear that this loan...

The questioner : ...brought benefit.

The Shaykh : ...brought benefit.

The questioner : Oh sir, may Allah reward you with good. By Allah, this was absent from the mind and the brain.

The Shaykh : Good, if Allah wills.

The questioner : Now, the real question.

The Shaykh : So we are your brother for free.

The questioner : No, sir, no, by Allah.

The Shaykh : For the reward of Allah.

The questioner : May Allah reward you with good, oh sir. By Allah, the truth is, we are in ignorance, but praise be to Allah who guides us to those who show us the way.

The Shaykh : We are at your service, oh Abu Yahya.

The questioner : Oh sir, now this same project, this project is now working; let us say it is sixty thousand dinars.

The Shaykh: All right.

The questioner : It needs, from time to time, a larger capital.

The Shaykh: Yes.

The questioner : But we do not want this larger capital to be employed permanently.

The Shaykh: Yes.

The questioner : If it needs, for example, to buy a batch, it needs this or that, it may need five or six thousand dinars. If it is available to us, he says, "Uncle, let us be partners in a profit-sharing partnership."

The Shaykh: All right.

The questioner : So give us this money, and we entered into a discussion about how much.
Source www.al-albany.com

The Arabic text is copied verbatim from the original source, without any edits.

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