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The question

What is the ruling on money earned from winning a website design competition through an intermediary where the client selects the winner, with the website taking a commission, and does the ruling differ if a portion of the amount is distributed to those who qualify for the final round, or in the case of guaranteed versus non-guaranteed competitions?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

This transaction can be classified as a ju'alah (reward/stipend) contract, where the client offers a known reward to whoever's design is chosen. It is permissible even if the recipient is not specifically designated. Ju'alah differs from ijarah (leasing/hiring) in that it is a revocable contract, and it does not require knowledge of the duration or the amount of work. It is permissible even with uncertainty regarding the work and the duration, provided that the compensation is known. Therefore, if the commission is known to each designer, there is no objection, and similarly, if the designers are informed in advance about the method of dividing the amount or selecting a single design. However, if the client withdraws for a reason unrelated to the quality of the designs after the designers have completed the work, he does not have the right to retract.

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Ftawy
Original fatwa ID
177853
Imported
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