Liaison office of Grand Ayatullah Sayyid Ali Al Sistani (L.M.H.L) in London, Europe, North and South America.
2150. If two persons make an agreement that they would trade with the
goods jointly owned by them, and would divide the profit between themselves, and
if they pronounce a formula declaring partnership, in Arabic or in any other
language, or express their intention of becoming each other's partner by
conduct, the partnership will be valid.
2151. If some persons enter into a partnership to share the wages from
their labour, like, if a few barbers or labourers agree mutually that they would
divide between themselves whatever wages they earn, that partnership is not in
order.
But if they enter into a mutual compromise that, say, half of what
one earns will be given to the other, for a fixed period, in exchange of half of
what the other earns, this transaction will be valid, and thus each will be a
partner in the wages of the other.
2152. If two persons enter into a partnership, on the terms that each
of them would purchase the commodity on his own responsibility, and each would
be responsible for the payment of its price, but would share the profit which
they earn from that commodity, that partnership is not valid.
However, if
each of them makes the other his agent, authorising that whatever one purchases
on credit, the other will be a partner in it, which means that he and his
partner are responsible for the debt, then they will be considered partners in
that commodity.
2153. The persons who become partners under the rules of partnership,
must be adult and sane, and should have intention and free volition for becoming
partners. They should also be able to exercise discretion over their properties.
Hence, if a feeble-minded person who spends his wealth impudently, enters into
partnership, it is not in order, because such a person has no right of disposal
over his property.
2154. If a condition is laid down in an agreement of partnership, that
the partner who manages, or does more work than the other partner, or does more
important work than the other, will get larger share of the profit, it is
necessary that he should be given his share as agreed upon. Similarly, if it is
agreed that the person who does not manage, or does not do more work, or does
not do more important work, will get larger share of the profit, that condition
is also valid and it must be fulfilled.
2155. If it is agreed that the entire profit will be appropriated by
one person, or the entire loss will be borne by one of them, that sort of
partnership is a matter of Ishkal.
2156. If it is not agreed that one of the partners will receive more
profit, and if the investment of each of them is equal, they must share profit
and loss equally. And if their investment is not equal, they should divide the
profit and loss in proportion to their capital.
For example, if two
persons become partners, and the capital of one of them is double the capital of
the other, his share in the profit and loss will also be double of the other,
irrespective of whether both of them do equal work, or one of them does less
work, or does not work at all.
2157. If it is laid down in the agreement of partnership, that both
the partners will buy and sell together, or each of them will conclude
transactions individually, or only one of them will conclude transactions, or a
third party will be hired to conclude the transaction, they should act as agreed
upon.
2158. If it is not specified as to which of the partners will buy and
sell with the capital, neither of them can conclude any transactions with that
capital without the permission of the other.
2159. The partner who has been given the right of discretion over the
capital, should act according to the agreement of partnership. For example, if
it is agreed that he will purchase on credit, or will sell against cash payment,
or will purchase the property from a particular place, he should act according
to the agreement.
However, if no such agreement is made with him, he
should conclude transactions in the usual manner, and carry on in such a way
that no loss is suffered in the partnership. He should not carry any property
belonging to the partnership, with him while he is travelling, if that is
unusual.
2160. If a partner who transacts business with the capital of the
partnership, sells and purchases things contrary to the agreement made with him,
or concludes transactions in a manner which is not normal, because of the
absence of any agreement, the transaction made by him in both the cases will be
correct and valid; but if such a transaction results in a loss, or a part of
wealth is squandered, then the partner who has acted against the agreement, or
the usual norm, will be responsible for the loss.
2161. If a partner 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.
2162. If a partner who trades with the capital of the partnership,
declares that the capital has perished, and if other partners trust him, they
should accept his word. But if they do not trust him, they can complain against
him before the Mujtahid, who will decide the case according to Islamic laws.
2163. If all the partners withdraw the permission, given by them to
one another, for the right of discretion over their respective shares held in
partnership, none of them will be allowed the right of discretion over them. And
if one of them withdraws the permission accorded by him, the other partners do
not have the right of discretion; but one who has withdrawn his permission can
exercise his right of discretion over the property of the partnership.
2164. If one of the partners demands that the capital invested in the
partnership should be divided, others should accept his demand even if the
period fixed for the partnership may not have expired yet, except when the
division of the capital entails considerable loss to the partners.
2165. If one of the partners dies, or becomes insane, or unconscious,
other partners cannot continue to exercise right of discretion over investment
held in the partnership. And the same rule applies when one of them becomes
feeble-minded that is, spends his property without any consideration.
2166. If a partner purchases a thing on credit for himself, its profit
and loss belongs to him. However, if he purchases it for partnership, and if the
agreement allows credit dealings, its profit and loss belongs to both of them.
2167. If the partners conclude a transaction with a joint capital
investment, and it transpires later that the partnership was invalid, if the
validity of the transaction was not dependent on mutual consent, meaning that,
if they had known that the partnership was not valid, they would have still been
agreeable to having the right of discretion over the property or stock of each
other, the transaction will be considered valid, and whatever is gained or lost
from the transaction will be shared by them.
But if the partners would not
have been disposed to agree to exercise discretion over each others' stock or
property had they known that the partnership was not valid, yet they approve the
particular transaction, it will be valid - and if they do not, it will be
invalid.
And in either case, if any partner has worked for the partnership
without the previous intention to work gratis, he can collect the wages for his
services at the usual rate, considering the percentage of other partners. But if
the usual wage is more than his share of dividend, after having agreed to the
validity of the transaction, he should take the dividend only.