Islamic rulings on trade

Is it necessary to divide profit equally if capital is invested equally?

Question 1: What have Islamic scholars ruled on the following matter? Two people have entered into a business partnership in such a way that both of them have put up an equal amount of capital. One of them does work and receives seventy five percent of profit, whereas the other who does not work takes twenty five percent. Is it permissible to do so?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: Yes indeed. In the above-mentioned situation, a higher profit ratio may be determined by mutual consent for the working partner. There is no harm in it. It is stated in Bahar-e-Shari’at: ‘If both of them enter into a business partnership in such a way that both will make investment and only one of them will do work but both will receive profit which will be distributed as per the ratio of investment or the profit will be distributed equally or the working partner will receive more profit; this is permissible. If the sleeping partner [i.e. one who does not work] receives more profit, this will not be permissible.’ (Bahar-e-Shari’at, vol. 2, pp. 499)

وَاللہُ اَعْلَمُ   عَزَّوَجَلَّ   وَ رَسُوْلُہٗ اَعْلَم  صَلَّی اللّٰہُ عَلَیْہِ واٰلِہٖ وَسَلَّم

Is it allowed to buy fish from the shop of a non-Muslim?

Question 2: What have Islamic scholars ruled on the following matter? Are we allowed to buy fish from a non-Muslim fish-seller?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: Yes indeed. You are allowed to buy fish from a non-Muslim and to eat it because it is not a condition to slaughter fish; nor is it necessary to buy it from a Muslim. Sayyiduna Abdullah Bin Umar رَضِیَ اللّٰهُ عَنْهُمَا narrated that the Greatest and Noblest Prophet صَلَّى اللّٰهُ عَلَيْهِ وَاٰلِهٖ وَسَلَّم said, احلّت لنا میتتان ودمان، المیتتان الحوت والجراد، والدمان الکبد والطحال ‘Translation: Two dead animals and two bloods are Halal for us. Two dead [animals] are fish and locust and two bloods are liver and spleen.’ (Mishkat-ul-Masabih, vol. 2, pp. 84, Hadees 4132)

A’la Hadrat Imam Ahl-e-Sunnat رَحْمَةُ الـلّٰـهِ عَـلَيْه was asked a question, ‘If an animal is slaughtered by such people as Hindus, it is not permissible to eat it. Is it allowed to eat the fish caught by such people?’ A’la Hadrat رَحْمَةُ الـلّٰـهِ عَـلَيْه replied, “This is permissible even if the fish dies in his hand or even if he kills it. This is because it is not a condition to slaughter fish. Slaughter will be valid only when performed by a Muslim or anyone from ‘the people of the book’. (Fatawa Razawiyyah, vol. 20, pp. 323)

وَاللہُ اَعْلَمُ   عَزَّوَجَلَّ   وَ رَسُوْلُہٗ اَعْلَم   صَلَّی اللّٰہُ عَلَیْہِ واٰلِہٖ وَسَلَّم

Is it allowed for tenant to rent out shop and to receive rent money from others?   

Question 3: What have Islamic scholars ruled on the following matter? A person has rented a shop. By putting up wooden partitions, etc. in the same shop, he rents them out to three to four persons after entering into an agreement in which he has mentioned his own name. Is it permissible to do so?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: Islamic jurists have set out some conditions for renting out an already rented thing to someone else in return for more amount of money. In the above situation mentioned in the question, those conditions have been met. Therefore, in the above situation, it is permissible to rent out the rented shop to someone else after putting up wooden partitions, etc.

It is stated in Bahar-e-Shari’at: If a person rents a house or shop and then rents it out to someone else in return for the same rent money that he is paying or for lower than that, it’s all right. If he rents it out in return for increased rent money, he must give the extra amount to charity. However, if he renovates the house, it is not necessary to give the extra money to charity. If the kind of rent payment has changed – for example, he has rented the house and is paying rent money in rupees but he is receiving rent payment in gold coins after renting it out – it is permissible to receive the extra amount in this case too. Renovation does not mean just cleaning the house with a broom; nor will this make extra amount of money permissible. Renovation means doing such a piece of work which is related to the building, such as plastering or constructing a boundary wall.” (Bahar-e-Shari’at, vol. 3, pp. 124)

وَاللہُ اَعْلَمُ   عَزَّوَجَلَّ   وَ رَسُوْلُہٗ اَعْلَم   صَلَّی اللّٰہُ عَلَیْہِ واٰلِہٖ وَسَلَّم

Is employee allowed to receive extra amount by telling higher rate of purchased material?    

Question 4: What have Islamic scholars ruled on the following matter? I belong to the construction field. Sometimes, in addition to the mutually decided work, my contractor sends me to bring sand, gravel, etc., which takes a lot of time and involves great hardship. I receive nothing in return for this extra work. Let’s suppose I buy any building material for 3000 rupees. Now, am I allowed to receive 3500 rupees from the contractor by saying that I have bought it for 3500 rupees and to keep 500 rupees with me in this way?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: You are not allowed to do. In the situation mentioned in the question, it is not permissible for you to receive the extra 500 rupees because the way you want to receive these 500 rupees is cheating and cheating anyone is impermissible and a sin. By Shari’ah, it is compulsory for you to tell the contractor the exact amount spent on purchasing.

وَاللہُ اَعْلَمُ   عَزَّوَجَلَّ   وَ رَسُوْلُہٗ اَعْلَم   صَلَّی اللّٰہُ عَلَیْہِ واٰلِہٖ وَسَلَّم

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