The Creed of Compassion-Islamic Teachings & Answering Doctrinal Misconceptions

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.

Issue No.1840- To Compromise means coming to terms with someone in the matters of dispute between them or issues that might lead to dispute or quarrel, by giving up a part of his own property, profit gained from it or his own right, or by waiving debt or rights, while the other may also do the same. This is called ‘to compromise in exchange for something’, and if it is done without claiming anything in return, it is called ‘to compromise not in exchange for something’, and both of these compromises will be in order.

Issue No.1841- A person who gives something to another person by way of compromise, should be mature and sane, and no one should have compelled him, and should have serious intention of making compromise, and he should also not be mentally incompetent (a person who uses his property wastefully), and he should not have been prevented by an Islamic judge from making use of his own property.

Issue No.1843- If a person wants to give up his claim from another person in exchange for something or for nothing by way of compromise, it will be in order in case the other side accepts it. However, if he wants to waive his claim or his right, the acceptance of the other party will not be necessary. And this is also a kind of compromise.

Issue No.1844- If a debtor knows the amount he owes, yet, he declares that he does not know, and his creditor does not know either so he makes compromise with the debtor for an amount less than what he owes him, it will not be in order, and the debtor will remain indebted to the creditor in respect of that extra proportion, unless the circumstances are such that even if the creditor had known the amount of debt, he would have made compromise for that very amount.

Issue No.1845- If two parties wish to make a compromise on two things of the same kind whose weight is known, the compromise will be in order if it does not entail usury. Therefore, the weight of one commodity should not be more than the other. If their weight is not known, and it is likely that one is more than the other, compromise is not allowed as an obligatory precaution.