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Lesson Partnership
It is a gathering of people for an entitlement or disposition between two or more people. An example of the first is two people sharing an inheritance or a gift. An example of the second is two people working together in buying and selling.
Ruling of Partnership
The permissible partnership: As a basic rule all transactions are permissible. Allah has made it permissible out of creating ease for the slaves in order for them to obtain their sustenance. It is allowed with a Muslim and non-Muslim with the condition that the non-Muslim does not act alone in transactions without the Muslim.
A person needs to let his money grow, and he may not be able to do that by himself due to his inability and lack of experience, or insufficient capital. Likewise, society at times needs large projects to be undertaken, and it is less likely that there is an individual who can undertake any of that alone, and this is where partnerships facilitate all of that.
Types of Partnerships
Co-Ownership is of two types:
This comes about with the action of the partners, for example, they both buy some real estate or movable property, and it then becomes a co-ownership between them.
Compulsory Partnership
This is when something is declared for two people or more without any effort from them, such as two people inheriting, so they are both co-owners of the inheritance.
Disposition of Partners in a Share-Ownership
Each of the two partners does not interfere with the portion of the other partner. So he may not dispose of it without his permission.
Contractual Partnership
It is a mutual disposition, such as mutual buying and selling, leasing, etc.
Categories of Contractual Partnership
Capital-Labour Partnership
This is a partnership of two partners, where one of them provides money to the other and he trades it with a known part of the profit. Like a quarter, or a third, etc, and the rest belongs to the partner that provides the capital. If the money is lost after being disposed of, it will be compensated from the profit, and the worker is not held responsible. If the money is lost not due to mismanagement or negligence, the worker is not held as a guarantor. The worker is trusted in receiving money, has the authority to dispose of the capital, is an employee, and is a profit-sharing partner.
A Partnership of Reputation or Creditworthiness
This is a partnership between two people, without either of them having any capital. They buy on credit based on their creditworthiness, and reputation among people. and sell using cash, and whatever profit Allah provides them is shared between them, and whatever loss occurs is likewise on them equally. Each one of them is an agent of the other and a guarantor in buying and selling and disposing of the capital. It is so called because it is based on their reputation among people.
Unequal-share Partnership
This is when two people share their efforts and wealth that has been fixed, even if it is disproportionate, and they both work themselves. The capital from each partner must be clearly specified, and the profit and loss will be according to the prerequisites and mutual consent.
Partnership of Services
This is when two people share in what they acquire with their efforts, whether it is sharing trades and professions, such as blacksmithing, carpentry, etc, or other permissible work; such as logging and cutting grass, and whatever Allah provides them is shared between them according to their agreement and mutual consent.
Equal-Share Partnership
This is when each of the partners authorizes his counterpart in every financial and physical disposition in the company. Each partner has absolute control over buying and selling, taking and giving, guarantees and powers of attorney, loans, donations, and other things that trading requires to be undertaken.
Each partner is obligated to do what his partner does, and the partnership is based on the money that the contract stipulates. The profit is shared between them according to the condition, and the loss is according to the extent of the ownership of each of them of the company. This partnership is permissible, and it combines the previous four partnerships, and all of them are permissible, due to the cooperation in earning a livelihood, meeting the needs of people, and achieving justice and common interest.
1- It is the best means for making money, employing workers, benefiting the nation, opening up forms of livelihood, and achieving justice.
2- Avoiding the need for unlawful earnings; usury, gambling, and so on.
3- Expanding the scope of halal forms of earning, indeed Islam has permitted a person to acquire wealth alone, or in collaboration with others.
