Laws Of Partnership

Front 1

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 _____

Back 1

will be valid.

Front 2

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_____

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 ____,

Back 2

a) is not in order.

b) will be valid

Front 3

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 ___

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_____

Back 3

is not valid.

they will be considered partners in that commodity.

Front 4

2153. * The persons who become partners under the rules of partnership, must be
1)
2)
3)
4)

They should also be able to_____

if a feeble-minded person who spends his wealth impudently, enters into partnership, it is_____

Back 4

adult
and sane,
and should have intention
and free volition for becoming partners.

exercise discretion over their properties.

not in order

Front 5

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 _____

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 _____

Back 5

necessary that he should be given his share as agreed upon.

also valid and it must be fulfilled.

Front 6

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 _____

Back 6

a matter of Ishkal.

Front 7

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, _____

if their investment is not equal, ____

Back 7

they must share profit and loss equally.

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.

Front 8

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,
_____

Back 8

they should act as agreed upon.

Front 9

2158. If it is not specified as to which of the partners will buy and sell with the capital, ____can conclude any transactions with that capital _____

Back 9

neither of them

without the permission of the other.

Front 10

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. Regarding carry property belonging to the partnership_____

Back 10

He should not carry any property belonging to the partnership, with him while he is travelling, if that is unusual.

Front 11

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 _____

if such a transaction results in a loss, or a part of wealth is squandered, then _____

Back 11

in both the cases will be correct and valid

the partner who has acted against the agreement, or the usual norm, will be responsible for the loss.

Front 12

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,____

Back 12

he is not responsible.

Front 13

2162. * If a partner who trades with the capital of the partnership, declares that the capital has perished...,
if other partners trust him, _____

if they do not trust him, _____

Back 13

they should accept his word.

they can complain against him before the Mujtahid, who will decide the case according to Islamic laws.

Front 14

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, _____will be allowed the right of discretion over them.

if one of them withdraws the permission accorded by him, the other partners do not have the right of discretion; ____

Back 14

none of them

the one who has withdrawn his permission can exercise his right of discretion over the property of the partnership.

Front 15

2164. * If one of the partners demands that the capital invested in the partnership should be divided, _____

if the period fixed for the partnership may not have expired yet ____

except when the division of the capital entails____

Back 15

others should accept his demand

others should accept his demand

considerable loss to the partners.

Front 16

2165. If one of the partners dies, or becomes insane, or unconscious, other partners _____continue to exercise right of discretion over investment held in the partnership.

when one of them becomes feeble-minded that is, spends his property without any consideration, _____

Back 16

cannot continue to exercise right of discretion over investment held in the partnership

the same rule applies .

Front 17

2166. * If a partner purchases a thing on credit for himself, its profit and loss belongs to_____.

if he purchases it for partnership, and if the agreement allows credit dealings, its profit and loss belong to ____

Back 17

him

both of them.

Front 18

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 ____,

whatever is gained or lost from the transaction will be ____

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 ___ - and if they do not, it will be ____

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
if the usual wage is more than his share of dividend, after having agreed to the validity of the transaction, he should

Back 18

valid

shared by them

valid, invalid

take the dividend only.