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Sharing in the profit and loss in a partnership

Q: There is a company called 3A Alliance. The comapny take’s money from people for investing. They have a motorcycle company called Supreme. They take your money in advance which is RS,21 600. The total amount for the bike is RS,36 000 and they say that after 35 days we should come take the bike or sell it back to them. It means that they sell it to other wholeseller’s across the city and once you have invested this Rs,21 600 amount they order a bike by your name every month and sell it to other’s and give you some of the profit which is Rs,3500. It sometimes goes up and down every 2/3 month’s

Is this halaal or haraam? The company also deals with other home appliannces like TV, refrigrators, water purifiers and they also say that if you don’t like our company you can take whatever it is you have invested.


A: It would seem that this is a type of partnership. In order for a partnership to be valid the partners have to share in the loss and profit in proportion to their investments. Further, the amount that one is going to receive as profits cannot be fixed with an amount. It has to be fixed with a percentage of the total profits.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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