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Is it permissible to contract with an investor such that his share is 35% of every subscription sold monthly for a period of two years, considering the company's profits and losses to be from the other party's share (65%), given that the contract includes a clause clarifying the possibility of loss?

1 min readAlso available in العربية

This partnership is not valid because the conditions for a valid partnership are not met. These conditions include: the capital of each partner being in cash, or being appraised if it is in kind. This is missing in the aforementioned agreement. Furthermore, a partnership is a permissible and non-binding contract, so stipulating its permanence forever or for a specific period is problematic. This is a void condition, but it does not invalidate the partnership itself. Also, it appears from the question that one of the partners does not recover any of his capital, or does not bear any of the loss, and both of these matters are invalid and contradict the essence of a partnership.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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