What is the ruling on a partnership in a panicum grass cultivation project, if the land and well are owned by one of the partners, while the other participates with capital and supplies, along with paying half the price of the land annually as a Mudarabah company (Anan partnership) in planting and cultivating, and is the loan for digging the well to the partner permissible in this case, and what is the fate of the earned money if the partnership is impermissible?
The answer can be summarized in three points:
1. Lending money to a partner for digging a well: This is not permissible if it is a condition in the partnership contract, such that entering into the transaction is conditional upon the loan, because a condition in a loan invalidates the contract. However, if the loan is made after the contract is finalized, there is no harm in it. 2. Land ownership by one of the partners: This does not affect the validity of the contract if the rent is a known amount of money that they share, and not something from the produce of the land. 3. Donating irrigation equipment: This does not affect the validity of the transaction if the donation occurred after the contract was made.
Based on the above, there is no harm in the questioner continuing with this partnership.
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- Original fatwa ID
- 181914
- Imported
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