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Is the proposed contract, which stipulates that I receive a monthly remuneration and a percentage of the profits of a new software company in exchange for my technical management, and that the parent company receives the remaining percentage of the profits and free copies of the software, a legitimate contract?

1 min readAlso available in العربية

It is permissible for a person to be both a partner and an employee simultaneously, and to receive wages for their work if their work is governed by a separate contract or agreement from the partnership contract. This partnership included an agreement that you would be entitled to a salary and 30% of the profits in exchange for your contribution of a copy valued at 12,0 dinars.

Scholars have differed on the issue of one partner's capital being in the form of goods (ʿuruḍ) and the other's being in cash (thaman). The majority of them held that such a partnership is invalid, while Malik and Ahmad (in one narration) permitted it, provided that the goods are appraised and their value as capital is determined at the time of the contract. This is the more preponderant view.

Accordingly, if an agreement was reached with the parent company to appraise the copy and determine its value as capital at the time of the contract, then the partnership is valid, and you are entitled to a share of the profits. However, if this was not done, the partnership is invalid, and you are not entitled to this percentage; rather, you are entitled to a fee for the copy or its value if it was sold, in addition to the agreed-upon salary for your work.

There is no objection to the company receiving 70% of the profits or a free copy of the software if this was agreed upon in the partnership contract.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy