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The question

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?

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

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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Where this answer came from
Source platform
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.
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Read the full answer on Ftawy