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11. Partnership (Shirkah)

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  • Ruling 2152

    If two people form an agreement to trade with property jointly owned by them and to divide the profits between them, and they say a formula (ṣīghah) for establishing a partnership – in Arabic or in any other …

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  • Ruling 2153

    If some people form a partnership with respect to the wages they receive for their work – for example, some masseurs agree to divide whatever wages they earn between them – their partnership is not valid. However, if …

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  • Ruling 2154

    If two people form a partnership and [make an agreement that] each of them will purchase a commodity with his own credit and that person will be responsible for paying off the debt for it but they will …

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  • Ruling 2155

    Individuals who become partners of each other by means of a partnership contract must be of the age of legal responsibility (bāligh) and sane (ʿāqil). They must also have an intention (qaṣd) to enter into the partnership and …

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  • Ruling 2156

    If in the partnership contract the partners stipulate a condition that the one who does the work, or who does more work than the other partners, or whose work is of greater importance than that of the others, …

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  • Ruling 2157

    If the partners agree that one person will take all the profits or that one of them will bear all the losses, the validity of such a partnership is problematic (maḥall al‑ishkāl) [i.e. based on obligatory precaution (al‑iḥtiyāṭ …

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  • Ruling 2158

    If the partners do not stipulate a condition that one of the partners will take a larger share of the profits, in the event that the capital invested by each partner is the same amount, they must enjoy …

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  • Ruling 2159

    If in the partnership contract the partners stipulate a condition that both will buy and sell together, or each one of them on their own will conduct transactions (muʿāmalāt), or only one of them will conduct transactions, or …

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  • Ruling 2160

    A partnership can be of two types: [i] a permission-based partnership (al‑shirkah al‑idhniyyah); in this type, before the partnership conducts a transaction (muʿāmalah), the trade property is owned by the partners (shurakāʾ) in the form of joint ownership …

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  • Ruling 2161

    A partner who has been vested with the right of discretion over the capital must act in accordance with the partnership contract. For example, if it has been agreed with him that he will buy on credit or …

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