Lesson 78
Business (1)
Partnership and Contracts
Partnerships for wealth development through trade, agriculture or industry are lawful as enacted and admitted by the Prophet (SAWS) in various forms
Al-`Anan (Cooperative) Partnership:
In which individuals have their shares to invest money and divide profit and loss according to the value of each share.
Al-Abdan (Manual) Partnership:
Individuals participate in a certain activity and agree on dividing the revenue
between them.
Al-Wujuh (Well-Known Partner) Partnership:
It is the participation in trade transactions, purchase and sale, while dividing profit
and loss.
Financing a Profit-Sharing Venture:
A Muslim gives another a sum of money to invest in a lawful business, and they
share both profit and loss according to conditions they had stipulated.
Comprehensive Partnership:
It includes the above dealings, as the two partners authorize each other in carrying
out any transactions and they share in both profit and loss.
Sharecropping:
It is to let another cultivate his land in return for a known portion of the
harvest.
Watering for Part of the Crop
It is to contract with another concerning irrigation of his crop in return for a
known share of their yield.
Evidence from the Qur’an and Sunnah
The legality of partnership:
The Messenger of Allah (SAWS) said:
“Allah, Most High, says: I make a third with two partners as long as one of them
does not cheat the other, but when he cheats him, I depart from them.”
(Reported by Abu-Dawud)
Manual partnership:
`Abdullah Ibn-Mas`ud (RA) narrated:“I, `Ammar, and Sa`d became partners in
what we would receive on the day of Badr. Sa`d then brought two prisoners,
but I and `Ammar did not bring anything.”
(Reported by an-Nasa’iyy and Abu-Dawud)
Financing a Profit-sharing venture:
It was applied in the time of Prophet Muhammad (SAWS) and he agreed upon
it.
(Minhaj al-Muslim)
Sharecropping and watering for part of the crop:
`Abdullah Ibn-`Umar (RA) narrated:“The Prophet concluded a contract with the people of Khaybar to utilize the land on the condition that half the products of
fruits or vegetation would be their share.”
(Reported by al-Bukhariyy and Muslim)
Sharecropping and watering
Rafi` Ibn-Khadij (RA) narrated that the Prophet (SAWS) said:
“It is better for one of you to lend his land to his brother than to take a prescribed
sum from him.”
(Reported by an-Nasa’iyy)
Job wages:
The Prophet (SAWS) said to a group of the Companions:
“How do you know that Surah Al-Fatihah is a Ruqyah? You have done the right thing. Divide (what you have got as a wage for Ruqyah) and assign for me a
share with you ”.
(Reported by Muslim)
Job wages:
The Messenger of Allah (SAWS) said:“Allah, the Exalted, said: I will be the
adversary of three persons on the Day of Judgment. One who makes a covenant in
My Name and then breaks it, one who sells a free man as a slave and devours
his price, and one who hires a workman and having taken full work from him,
denied him his wages ”.(Reported by Al-Bukhari)
Job wages:
Abu Sa`id Al-Khudri (RA) narrated:
“The Prophet (SAWS) prohibited (Muslims) to hire a laborer without
determining his wages”.
(Reported by Ahmad)
Job wages:
The Prophet (SAWS) also said:
“Anyone who practices medicine when he is not known as a practitioner will be
held responsible ”.
(Reported by An-Nasa’i, Abu Dawud ,
and Ibn Majah)
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