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Goodwill in Islam

Answered as per Hanafi Fiqh by Askimam.org

I am running a school in India which is some 30 yrs old. The school has earned name and fame during past 30 yrs. One of my friends wants to start a school by the same name and he is ready to pay a goodwill for using the name. Does shariah allow me to take the goodwill?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Goodwill is not considered to be a valid article of trade in Sharī’ah.  Therefore, it will not be permissible to sell or receive any amount as Goodwill. As an alternative you could offer your services in an advisory role for your friend’s school to maintain the ethos of his school name and be remunerated for your services. 

And Allah Ta’āla Knows Best

Huzaifah Deedat

Student Darul Iftaa
Lusaka, Zambia

Checked and Approved by,
Mufti Ebrahim Desai.

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الدر المختار -دار الفكر (5/ 50)

بطل بيع ما ليس بمال ) والمال ما يميل إليه الطبع ويجري فيه البذل والمنع درر   فخرج التراب ونحوه ( كالدم ) المسفوح فجاز بيع كبد وطحال ( والميتة ) سوى سمك وجراد ولا فرق في حق المسلم بين التي ماتت حتف أنفها أو بخنق ونحوه ( والحر والبيع به ) أي جعله ثمنا بإدخال الباء عليه لأن ركن البيع مبادلة المال بالمال ولم يوجد ( والمعدوم حق التعلي ) أي علو سقط لأنه معدوم ومنه بيع ما أصله غائب كجزر وفجل أو بعضه معدوم كورد وياسمين وورق فرصاد  

 احسن الفتاوی –جلد 6 – ص528 ت 530 – ایچ ایم سعید

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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