Partnerships

Q: I am opening a business with a friend. He will buy a vending machine and I will provide the chocolates and confectionery for the vending machine. Is this permissible and is the money made halaal for me?

Q: Two brothers are partners in a property which generates monthly rentals. The one partner passed away recently (may Allah Ta'ala forgive him). Now that the one partner has passed away, does it mean that the living partner and the heirs of the deceased partner automatically become joint partners? How should the property be distributed now? Can the one party purchase the 50% share from the other party? The living partner wishes to give his 50% share in the property to his three daughters. Can he do this? If yes, does he require consent from the heirs of the deceased partner? Also, how should he actually carry out this transfer? If he merely has a document drawn up wherein, he wilfully transfers ownership of his share (gifts it) to his daughters and has an independent person sign on his behalf, or merely verbally mentions this in the presence of two witnesses, will this be in order?

Q: I want to know that I am going to plan to have a Muslim restaurant in a non-Muslim country in partnership with another non-Muslim person. Wine and beer is common to drink. Can my partner can sell on his behalf in that restaurant which we both own? (the profit from wine and beer will belong to him only).

Q: We are two partners in a business. The one partner works in the business and takes a salary. When there is profit-sharing, how do we divide our profits?

Q: I have been offered a business proposal to be a shareholder in a new company by a businessman who is going to be the financier of the business. The offer is as follows:

(1) Better my current salary where I am currently working.

(2) 30% shares of the business.

He is also basing this decision on my knowledge and contacts that I have on the nature of this business. We have both agreed to have everything in writing at the right authorities. Please advise on how I should go about doing it.

Q: There are four equal partners in a building. One partner is renting a premises within this building. This partner does not want the annual increase in rental to apply to him as it applies to all the other tenants. Is it permissible for this partner to enjoy this advantage over the other partners and the other tenants?

Q: Two shareholders in a company came to an agreement to buy each other’s share in the company at the death of either one of the shareholders at an agreed price. This is to ensure the future of the company and also to guarantee a purchase price and a buyer for the shares. Funding of the purchase is by means of life assurance by the shareholders on each other’s lives. Both shareholders are Muslim and their wills are Shariah compliant. Is the buy and sell agreement between the two shareholders acceptable within the Shariah principles?

Q: I wanted to buy a sewing machine for R5500. I paid R500 and my husband paid the remaining R5000. Who does the machine belong to?

Q: I am to start a goat farm project in partnership that requires 57 lakh rupees and 120 sqmt piece of land. The land is of my grandfathers. 53 lakh rupees the bank is giving a loan and the remaining 4 lakh are devided in 4 partners as 2.5 lakh myself, and 50000 each by 3 partners. Net Profit will start from 3rd year after deducting all expenses. If the profit  is 100 rupee then my questions are:

1) How much (%) share of profit will be between partners.

2) How much share will be the land owners as the market value of the land is 3 lakh?

3) Land owner that is my grand father is expired so can that share be devided among 16 members of  his family?

Q: A partnership housed in a CC with 2 partners being equal members for a number of years running a retail businesses. Partner A and partner B. Partner A manages the warehouse and all store operations and staff and partner B manages purchasing of goods and finance and admin. The accounting works as follows. All monies are collected from stores and given to partner B. He then enters the receipt of money and credits the partnership. Partner B does all buying for the partnership as well as buying for his own stores which is owned by himself and for other stores which he supplies which are not part of the partnership. Partner B pays all suppliers as well as all expenses such as rental, wages, etc. Partner B purchases from suppliers in bulk supplies and invoices these goods to the partnership as well as the various other stores he supply’s. For the partnership, all payments off the partnership are paid by him. Once he has paid for expenses or goods of the partnership he invoices this out to the partnership. So an invoice will include payments he has made for goods purchased and supplied to the partnership and for expenses of the partnership that he has paid for such as wages rent etc.  All sales received from the stores are credited to the partnership in the books of of partner B when he receives it. All invoices for goods supplied are debited to the Partnership in the books of Partner B when he supplies it. All other Expenses such as rent wages etc are also debited in the same manner by Partner B. Thus the partnership will owe him money or he owing the partnership money at any given time based on the sales collected by him less the invoices he has issued to the partnership. The partnership has no creditors. The partnership is now splitting and the accounting being finalised were the sales collected by Partner B less the invoices made out to the Partnership by Partner B are being calculated to see how much is owed either to Partner B or from Partner B to the Partnership. During the partnership some 3 years ago Partner B was hijacked on route to pay suppliers and an amount of money was stolen from him. Partner B is now deducting 65% of that money stolen and claims this money belongs to the partnership and thus should be deducted. In the years from the hijacking to the split partner B has never told partner A that the money stolen was part of the partnership neither has he given him an amount. He has only brought it up now when the split has occurred as a deduction in the calculation. Will it be correct for him to deduct this money that was stolen he now claims 65% of which belongs to the Partnership?