Book Of Partnership

CR (545) Partnership from the sharia point of view is an allowable contract. Any one of the party can revoke it and if one party revokes it, the other is not allowed to use the partnership property. Such contract is also revoked because of one party's death, mental illness, bankruptcy or a court order stopping the owner from the use of his property.

CR (546) Partnership is valid in dealing with properties not works and performances like contracting to have the wages received by each party as property commonly owned by both partners, if they did such contract it is void and each one is entitled to the amount of payment he has received. However, if the parties decide to have a compromising settlement about their work and wages they receive like when each would say, " half of my wages will be for half of my friend's wages for a certain time," and the other party agrees and the parties share their work.

CR (547) If along with another binding contract the parties reach a compromising settlement requiring each party to pay half of his wages to the other party, such deal is valid and it is necessary to observe such condition.

CR (548) A partnership is not valid if it is based on the fact that each buys certain goods in exchange for some loan payable later and then sells such goods and equally shares the benefits or losses of such deals.

CR (549) A confused partnership is not valid like forming a contract that requires each party to share with the other party his income, regardless, of the source, income from trade, agriculture and inheritance etc., as well as their losses.

CR (550) In the kind of contract in rules 527 and 528 as mentioned every one is responsible and entitled to and for their losses and profits. However, if they agree on a settlement in a binding contract that if one party makes profit half of it will go to the other party and if one party suffers loss the other party compensates one half of it, such deal is valid.

CR (551) Partnership in a property comes into being when two people or more are entitled to the ownership of a piece of property as a substance, a loan owed by some one, legacy, property transferable to some one through a will or through their works like building or manufacturing etc., such means that comes out of free choice etc. Sometimes it is by means of mixing two properties in an indistinguishable manner when they are of the same kind or of different kinds like certain amount of grains or oils etc.

CR (552) The partners are each responsible and entitled to and for the loss and benefits proportionate to the amount of their share equal or different as the case may be.

CR (553) If equal sharing of losses or benefits is agreed upon when their shares of the capital are not equal or vice verse, such arrangement is valid only when the party in whose favor is the condition has to do some work, otherwise, such, condition is not valid.

CR (554) It is not lawful for any of the partners to use common property without the permission of the other, if one party is allowed for certain uses, it is not permissible for him to make other uses without the permission of the other party. However, making use of certain properties commonly owned is lawful even without other party permission when such use according to common practice does not require permission such as common driveways, paths and roadways.

CR (555) If not using the property would lead to its destruction like perishable food items etc., and one party would not allow the use, the Other party can refer the case to a shar'i authority for permission to use or sell etc., to avoid loss.

CR (556) If one partner demands to divide the property if it may cause losses in the substance or value to the limit that common sense does not ignore, it is not necessary for the other party to agree to such demand, otherwise, it is necessary to divide or he is forced to divide.

CR (557): - If two people own a house and they start to have difficulties and one party would not allow all kinds of uses and it would result in losses, the other partner presents the case to shar'i authority for permission to use in more beneficial ways as he may see it.

CR (558) If one party asks to sell a property that if divided would cause losses, so that the money received for it could be divided without loss, in such case it is necessary to agree to dividing the property or else he is forced to do so.

CR (559) If one party in a binding contract sets a condition which requires not to divide for a certain time, it is not necessary to agree to dividing the property until the end of the time required by the contract.

CR (560) For properly dividing commonly owned goods it is enough to divide it in equal parts and then cast lots to determine every one's share. Only consent of parties on whatever each party gets is not free from objection but optional precaution is against it.

CR (561) Dividing endowed property mixed with non-endowed one is valid, while dividing endowed property against certain conditions set by the founder is not valid, otherwise, it is valid.