Is it permissible for a programmer to take the full cost of a project (10,0 Riyals) from the partner who pays the expenses, in addition to later receiving a percentage of the profits in exchange for operating the project?
This contract is not valid, whether as a partnership (sharika) or a commenda (mudaraba), because it is not permissible to stipulate a fixed amount for the manager (mudarib) or partner in addition to their agreed-upon percentage of the profit. Stipulating a known sum of money for one of the parties invalidates the partnership or commenda contract.
The transaction can be rectified by structuring it as two separate contracts: the first, a contract of hire (ijara) for designing the program for a known sum, and the second, a contract of hire for operating it, with a wage that is a percentage of the profit. This is permissible according to the Hanbali school of thought, and it is the preferred () view.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 178197
- 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