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The question

What is the ruling on partnership based on effort in trade for a percentage, and how can the contract be written to conform to Sharia while worldly laws exist?

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

If you engage in trade with your own effort, you have three scenarios:

1. You work as an employee for the capital owner, with a fixed salary, and all profit belongs to the capital owner.

2. You partner with him in capital and profit, so you have a share of the profit, such as 20% for you and 80% for the capital owner.

3. The contract is a (profit-sharing) agreement: the capital owner provides the capital, and you provide the labor. If a loss occurs, the loss is borne by the capital owner, unless your negligence or violation of conditions is proven. The profit is shared between you according to the agreement.

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Where this answer came from
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Ftawy
Original fatwa ID
60185
Imported
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Source text, unreviewed
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