1. Lesson 78 Business (1)

2. Partnership and Contracts Partnerships for wealth development through trade, agriculture or industry are lawful as enacted and admitted by the Prophet (SAWS) in various forms

3. Al-`Anan (Cooperative) Partnership: In which individuals have their shares to invest money and divide profit and loss according to the value of each share.

4. Al-Abdan (Manual) Partnership: Individuals participate in a certain activity and agree on dividing the revenue between them.

5. Al-Wujuh (Well-Known Partner) Partnership: It is the participation in trade transactions, purchase and sale, while dividing profit and loss.

6. Financing a Profit-Sharing Venture: A Muslim gives another a sum of money to invest in a lawful business, and they share both profit and loss according to conditions they had stipulated.

7. Comprehensive Partnership: It includes the above dealings, as the two partners authorize each other in carrying out any transactions and they share in both profit and loss.

8. Sharecropping: It is to let another cultivate his land in return for a known portion of the harvest.

9. Watering for Part of the Crop It is to contract with another concerning irrigation of his crop in return for a known share of their yield.

10. Evidence from the Qur ’ an and Sunnah

11. The legality of partnership: The Messenger of Allah (SAWS) said: “Allah, Most High, says: I make a third with two partners as long as one of them does not cheat the other, but when he cheats him, I depart from them.” (Reported by Abu-Dawud)

12. Manual partnership: `Abdullah Ibn-Mas`ud (RA) narrated: “I, `Ammar, and Sa`d became partners in what we would receive on the day of Badr. Sa`d then brought two prisoners, but I and `Ammar did not bring anything.” (Reported by an-Nasa’iyy and Abu-Dawud)

13. Financing a Profit-sharing venture: It was applied in the time of Prophet Muhammad (SAWS) and he agreed upon it. (Minhaj al-Muslim)

14. Sharecropping and watering for part of the crop: `Abdullah Ibn-`Umar (RA) narrated: “The Prophet concluded a contract with the people of Khaybar to utilize the land on the condition that half the products of fruits or vegetation would be their share.” (Reported by al-Bukhariyy and Muslim)

15. Sharecropping and watering Rafi` Ibn-Khadij (RA) narrated that the Prophet (SAWS) said: “It is better for one of you to lend his land to his brother than to take a prescribed sum from him.” (Reported by an-Nasa’iyy)

16. Job wages: The Prophet (SAWS) said to a group of the Companions: “How do you know that Surah Al-Fatihah is a Ruqyah? You have done the right thing. Divide (what you have got as a wage for Ruqyah) and assign for me a share with you.” (Reported by Muslim)

17. Job wages: The Messenger of Allah (SAWS) said: “Allah, the Exalted, said: I will be the adversary of three persons on the Day of Judgment. One who makes a covenant in My Name and then breaks it, one who sells a free man as a slave and devours his price, and one who hires a workman and having taken full work from him, denied him his wages.” (Reported by Al-Bukhari)

18. Job wages: Abu Sa`id Al-Khudri (RA) narrated: “The Prophet (SAWS) prohibited (Muslims) to hire a laborer without determining his wages.” (Reported by Ahmad)

19. Job wages: The Prophet (SAWS) also said: “Anyone who practices medicine when he is not known as a practitioner will be held responsible.” (Reported by An-Nasa’i, Abu Dawud, and Ibn Majah)