assalamu alaikum. may allah have mercy on you.
I am going to start business with my brother who is a running business man. we have come to a contract that I will join in his business as a partner but with no investment from my side and in case of profit I will take 40% of it and he will take 60% as he has given full investment. And in case of loss I will not not share any portion. My brother agree upon this contract. Is this contract ok?
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
In order for a partnership to be Islamically valid, it is essential for both partners to share in loss, just as they share in profit. Hence this agreement will not be correct.
And Allaah Ta’aala knows best
Ismail Moosa (Mufti)
This answer was collected from Fatwaa.com which is an excellent Q&A site managed by Mufti Ismail Moosa from South Africa. .