Fatwa #472127 December 2021South Africa
Small Tuck Shop Partnership
Question
Asalamualaykum Mufti Saab
I have a question regarding a partnership. Partner (A) puts down $500 towards the purchase of goods for a small tuck shop. Partner (A) does not have any involvement other than providing money. Partner (B) does not contribute any money but will run the day-to-day business. Both partners (A and B) agree to the percentage of the profits. 70% for (A) and 30% for (B). Will this be permissible.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
There are two possible methods to run the business in reference.
1. Mudharabah
Mudharabah is a partnership wherein one partner (Rabbul Maal) contributes the capital whilst the other partner (Mudharib) will offer his time and effort to manage the business. The Rabbul Maal and the Mudharib may mutually agree to share a percentage of the profit, for example, 70% and 30%. However, the following must be kept in mind:
- All expenses of the business will be paid from the profit and the balance of the profit will then be distributed as per agreement.
- All losses will be borne by the Rabbul Maal. The Mudharib will lose his efforts and time.
- If losses are incurred due to negligence from the Mudharib, then he can be held liable.[1]
- Neither partner can stipulate a fixed sum as his profit. It must be a percentage of actual profits realised.
- Neither partner can claim a salary from the business.
2. Ijaarah
Ijarah is to employ the services of a person on wages given to him as consideration for his hired services. The employer is called Musta’jir while the employee is called Ajir.[2] This is a normal employment contract.
Person A will purchase and stock the tuck shop. He shall then employ person B to run his shop for him. Person B will be entitled to a salary (monthly, weekly, etc.) which should be mutually agreed upon. In this method:
- Person B will not be entitled to anything above his stipulated salary
- All profits (after deducting expenses) from the business will belong to person A.
- The employment period e.g., a 1-year contract, must be stipulated. The working hours must also be stipulated.
- The salary of person B is not dependent on the business turning a profit.
And Allah Ta’āla Knows Best
Hasan Ahmed Razzak
Student – Darul Iftaa
Paterson, New Jersey, USA
Checked and Approved by,
Mufti Ebrahim Desai
(2021-02-04)
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الجوهرة النيرة على مختصر القدوري (1/ 291)
وَفِي الشَّرْعِ عِبَارَةٌ عَنْ عَقْدٍ بَيْنَ اثْنَيْنِ يَكُونُ مِنْ أَحَدِهِمَا الْمَالُ وَمِنْ الْآخَرِ التِّجَارَةُ فِيهِ وَيَكُونُ الرِّبْحُ بَيْنَهُمَا. وَرُكْنُهَا الْإِيجَابُ، وَالْقَبُولُ
حاشية الشلبي على تبيين الحقائق (5/52)
قَالَ الْإتْقَانِيُّ هِيَ دَفْعُ الْمَالِ إلَى الْغَيْرِ لِيَتَّجِرَ بِهِ عَلَى أَنْ يَكُونَ الرِّبْحُ الْحَاصِلُ فِيهِ بَيْنَهُمَا عَلَى مَا شَرَطَا
بدائع الصنائع في ترتيب الشرائع (6/ 85)
(وَمِنْهَا) أَنْ يَكُونَ الْمَشْرُوطُ لِكُلِّ وَاحِدٍ مِنْهُمَا مِنْ الْمُضَارِبِ وَرَبِّ الْمَالِ مِنْ الرِّبْحِ جُزْءًا شَائِعًا، نِصْفًا أَوْ ثُلُثًا أَوْ رُبْعًا، فَإِنْ شَرَطَا عَدَدًا مُقَدَّرًا بِأَنْ شَرَطَا أَنْ يَكُونَ لِأَحَدِهِمَا مِائَةُ دِرْهَمٍ مِنْ الرِّبْحِ أَوْ أَقَلُّ أَوْ أَكْثَرُ وَالْبَاقِي لِلْآخَرِ لَا يَجُوزُ، وَالْمُضَارَبَةُ فَاسِدَةٌ؛ لِأَنَّ الْمُضَارَبَةَ نَوْعٌ مِنْ الشَّرِكَةِ، وَهِيَ الشَّرِكَةُ فِي الرِّبْحِ، وَهَذَا شَرْطٌ يُوجِبُ قَطْعَ الشَّرِكَةِ فِي الرِّبْحِ؛ لِجَوَازِ أَنْ لَا يَرْبَحَ الْمُضَارِبُ إلَّا هَذَا الْقَدْرَ الْمَذْكُورَ، فَيَكُونُ ذَلِكَ لِأَحَدِهِمَا دُونَ الْآخَرِ، فَلَا تَتَحَقَّقُ الشَّرِكَةُ، فَلَا يَكُونُ التَّصَرُّفُ مُضَارَبَةً،
شرح المجلة (4/ 325)
(المضاربة نوع شركة أن رأس المال من طرف والسعي والعمل من طرف آخر ويقال لصاحب رأس المال رب المال وللعامل مضارب)
Introduction to Islamic Finance Pg. 109