Silent Partnership: Stipulating Fixed Monthly Profit in a Binding Partnership Contract**

Practical Laws of Islam as per the teachings of Imam Khamenei

Silent Partnership: Stipulating Fixed Monthly Profit in a Binding Partnership Contract**

English:

Question #1892:

Is it correct to stipulate in a binding contract that the working partner pays the provider of the money a certain amount of money each month as his share of the profit and to make muṣālaḥah as to the difference between this amount and the actual proportionate share of money owner in the profit? In other words, is it permissible to include, in a binding contract, a condition that goes against the provisions of a silent partnership?

Answer #1892:

There is no objection to that if the condition is to make muṣālaḥah over the owner’s proportionate share of the profit, after it is made, in return for a certain amount of money payable to him each month. Yet, should the condition be to determine the owner’s share of the profit as the monthly amount, this runs contrary to the nature of the silent partnership and is, therefore, invalid.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Silent Partnership