Back to search
The question

What is the ruling of Islamic law regarding a restaurant owner stipulating a fixed amount to be paid by the guarantor at the end of each month, regardless of the restaurant's actual earnings?

Share this answer

Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

What was asked about regarding the "damān" (guarantee/indemnification) of a restaurant can be conceived in two forms:

1. The restaurant owner provides the worker with the restaurant building and its equipment, while the funding for consumables (like food and beverages) is the responsibility of the worker, in exchange for a fixed amount paid by the worker monthly. This form is permissible, as it constitutes a lease of the building. 2. The restaurant owner bears all the funding, including consumables and other items, and stipulates a fixed monthly amount from the worker, while all profits go to the worker. This form is impermissible, because it is either a فساد قراض (corrupt qirad - profit-sharing partnership) due to the fixed profit stipulation, or it combines (leasing) and qirad, and these two contracts are not permissible to be combined in one transaction, as mentioned by Sheikh Mayyara.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

Read the full answer on Ftawy
Where this answer came from
Source platform
Ftawy
Original fatwa ID
58226
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
Read the full ruling
Read the full answer on Ftawy