business
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?
Answer
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.