The Creed of Compassion-Islamic Teachings & Answering Doctrinal Misconceptions

Issue No.1824- Taking oath in the matter of transaction is makrūh, if it is true, and haram, if it is false.

Issue No.1826- If some persons enter into a partnership in the wages they earn – for example, if a number of brokers agree mutually that they would divide between themselves whatever wages they earn, this partnership is not in order.

Issue No.1828- The persons who intend to enter into a partnership must be mature and sane, and should have the intention and freedom in the matter of partnership. They should also be able to exercise discretion over their properties. Hence, if a mentally incompetent person who has no right of disposal over his property and spends his wealth prodigally, enters into a partnership, it is not in order.

Issue No.1830- Partners will get profit and loss in proportion to their capital, unless a specific condition has been stipulated in the agreement of the partnership. Therefore, share of the profit or loss of the one whose capital is twice as much as the others, will also be twice as much as the rest. However, if they agree that their share of benefit or loss would be equal, there is no problem in it.

Issue No.1831- In the agreement of the partnership, they can lay down a condition that both the partners will buy and sell together, or each of them may conclude transactions individually, or only one of them may conclude transactions. In any case, they should act according to the agreement reached between them. However, in case nothing is specified, neither of them can conclude any transactions with the capital, without the permission of the other.

Issue No.1832- The person who has been given the right of discretion over the capital of the partnership for concluding transactions, should act precisely according to the agreement and the conditions. For example, if it is agreed that he will not sell on credit, or will not buy from a particular institution or company, or will get collateral against credits, he should act according to the agreement. However, if no such agreements are made with him, he should conclude transactions in the ordinary and usual manner.

Issue No.1833- If the person who transacts business with the capital of the partnership, buys and sells contrary to the agreement made with him, and results in a loss, he will be responsible. Also, if no particular agreement has been made with him, and he concludes the transaction contrary to the usual manner, he will still be responsible.

Issue No.1834- If the person who trades with the capital of the partnership does not go beyond the bounds of his authority, nor is he negligent in looking after the capital, yet unexpectedly the entire capital or a part of it perishes, he is not responsible.

Issue No.1836- Partnership is binding. That is to say, neither of the two parties can cancel the agreement by himself, nor can he demand that the capital invested in the partnership should be divided before the expiry of the period fixed for the partnership, unless such a right had been preserved for him in the agreement.

Issue No.1837- If one of the partners dies, becomes insane, or mentally incompetent, other partners cannot continue to utilise the property held in the partnership. However, temporary unconsciousness is of no effect in it.

Issue No.1838- If a partner purchases an item on credit for himself, its profit or loss belongs to him. However, if he purchases it for the partnership in accordance with the partnership contract then it belongs to both.

Issue No.1839- If a transaction is concluded with the capital of the partnership, and it transpires later that the partnership was invalid, yet, if all the partners approve that transaction, it will be in order, and whatever is gained belongs to all of them, and those who have been working for the partnership may collect the wages for their services at the usual rate.