Presentation on theme: "Lesson 78 Business (1). Partnership and Contracts Partnerships for wealth development through trade, agriculture or industry are lawful as enacted and."— Presentation transcript:
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)