Laws of Trade
Mufti Abu Muhammad Ali Asghar Attari Madani
1) Working partner keeping any extra money for himself
Q: What do the scholars of Islam say regarding the following: two of us have formed a partnership, whereby each of us provided half the money earned. Yet, I do all the work and each of us receives half of the profit. We have both agreed to fixed prices for all goods, i.e., such-and-such a thing is for such-and-such amount. Can I sell something above the fixed rate, keep the extra income for myself, and not cut my partner in, as I do all of the work from the point of purchase to splitting the profits?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: In the above-mentioned case, it is not permissible for you to keep the additional money you receive for selling an item above fixed price. Extra profits must be split equally among both partners, as per the stipulated percentage.
In a contract of partnership, each person is a representative and protector of the other. When one party sells an item of joint ownership, he is not selling on his own behalf, but also on the others. If there is profit, both parties will partake of it in accordance with their agreed upon percentage. It is not permissible for a partner to take a portion of the profit for themselves without informing the other.
This still applies if you have both fixed a price for a certain item and you sell it for more than that, as the other partner’s share is not nullified by you attaining a profit above that of the fixed amount. This fixing of prices is merely to estimate profit; the true profits are revealed after goods are sold.
If the working partner wishes to take extra profit, a permissible way of achieving this would be to appoint a higher ratio of profit for him via mutual agreement. In this way, it will be permissible for the working partner to take extra.
As mentioned in Bahār-i-SharīꜤat:
If they agree to a partnership wherein goods will belong to both, only one will work, but both will take a share of the profit and said profit will be distributed according to the amount earned; this is permissible. It is allowed for them to take an equal amount, or for the working partner to take more (provided this was agreed upon).[1]
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
2) Giving a bribe to receive one’s established right
Q: What do the scholars of Islam say regarding the following: our father has passed away and he used to work for a company from which he received a pension, from his retirement until now. We did not collect the pension for some time. Now we are requesting the company for the amassed pension, they say they will dock some of it as commission and will not give it without taking their cut. We need this money. What is the ruling on the company demanding this money and us giving it to them?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: If a person, despite trying their best, cannot attain their established right without paying, it is permissible for them to pay for it. Yet, it is a form of bribery for the receiver, rendering it haraam for the latter to take.
In this scenario, your father’s pension, which is in possession of the company, is the rightful property of his family. If you cannot take possession of it despite your efforts without paying for it, it will be permissible for you to pay to receive the pension. Yet, it is impermissible and haraam for the company to take that money.
Muftī Amjad ꜤAlī al-AꜤẓamī رَحْمَةُ الـلّٰـهِ عَـلَيْه writes, “If one has rightful property he cannot take possession of without paying a bribe, and one pays the bribe to receive his right; his giving is permissible, i.e. the giver is not sinful. Whoever takes it certainly is, making it impermissible for them to do this.”[2]
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
(3) Selling a home which is infamous for jinn
Q: What do the scholars of Islam say regarding the following: there is a person who wishes to sell his house, but it is notorious for mischievous jinn that trouble those who reside in it. This is known by neighbours and other locals. He has put this house on rent, but nobody stays for long. He now wishes to sell this. Must he inform any potential buyers about the jinn? Will he be sinful is he does not mention it?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: When a home becomes known for the presence of jinn, it is necessary (wājib) for the seller to inform the buyer about this at the time of selling. If he sells it without mentioning, he will be sinful, as jurists have considered this to be a defect. Selling something defective without making mention of the defect is impermissible and sinful. If the house is sold without mentioning this defect, then according to the sharia, the buyer has the option to return it. It then becomes binding upon the seller to take it back and pay the full amount to the buyer.
Regarding a home considered misfortunate by people, it is mentioned in Durr al-Mukhtār: “If it becomes apparent after its sale that the house is misfortunate, one can return it, as nobody has interest in buying such a thing.”[3]
Muftī Amjad ꜤAlī al-AꜤẓamī states, “If one purchased a house or some land which people consider misfortunate, he can return it, as although such notions are not given credence, if he wishes to sell it in the future he will not find any buyers. This itself is a defect.”[4]
He further writes: “If the item being sold contains a defect, it is necessary (wājib) upon the seller to make it known; hiding it is haraam.”[5]
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
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