Question
Mr. A and Mr. B entered into a partnership. Mr. B., the investor gave Mr. A the sum of R100,000 to trade on condition that he (Mr. A) pays him R50,000 profit after a year. Also Mr. A has to guarantee the security of the invested amount. After a year Mr. A suffered a huge loss. Mr. B now demands his capital plus the R50,000 'profit' agreed on. Is Mr. A liable for the loss of the capital and the 'profit' which was not yielded by the business?
Answer
This corrupt deal was haraam from the very inception. The stipulation of R50,000 'profit' was actually a riba condition. Thus the deal was not a partnership of any Shar'i kind. The money advanced by Mr. B is in the category of a loan. He is entitled to the initial sum of R100,000 only. It is not permissible for him to demand anything more than this loan amount, nor is it permissible for Mr. A to pay him any excess, for it will be riba.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 24 No 07
- PDF page
- 5
Verbatim verified against the source PDF
Appears under DEVILS INHUMAN BODIES. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.