Is it permissible to contract with a company for the cultivation of a specific crop (such as garlic) using our own money, with the condition that they purchase the crop at a predetermined price per kilogram, and that profits be shared, and is it permissible to set the selling price before cultivation?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
Scholars have differed regarding the validity of (profit-sharing partnership) in agricultural investment. The Shafi'is do not consider it valid because they stipulate that the Mudarib's (managing partner's) work must be in trade. The majority of scholars, however, deem it valid, albeit with differences in conditions, one of which is not to restrict the Mudarib's work to agriculture only.
As for the Mudarib stipulating to sell the harvest to himself for a specific price, this is invalid because it is not in the interest of the contract or its requirement, and it can lead to uncertainty regarding the profit and harm to one of the parties.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193992
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193992
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy