Fatwa n°: 229
Category: Fatwas about Monetary Transactions
The ruling concerning canceling
a partnership without notification
I am one of three partners. We had established a partnership in renting a commercial store of selling general electricity requirements. We had acquired a commercial register for this store, knowing that we were partners under the name of one of us, and that was because I trusted him. Then Allah bestowed a favor upon me with a job in Emirates, thus I traveled there believing that I would remain a partner in the store. However, I was surprised that, without notifying me, I become no longer a part in the partnership. I only knew about this after few months when these two partners stopped the store of their own volition and without informing me. Then our friend under whose name the commercial register is written made a commercial deal from which he gained one million dinars of profits. I knew about this deal only when I returned to homeland after a year and a half. I heard the news from someone who is not one of the two partners, and who is the one who had the idea of the deal. I do not accept all these actions, thus I ask your eminence to detail the Islamic ruling regarding our case. May Allah reward you well for us and all Muslims, and may Allah grant you a long life and bless your knowledge and make people benefit from you.
All praise is due to Allah, the Lord of the Worlds. Peace and blessing be upon whom Allah sent as a mercy to the Worlds, upon his Family, his Companions and his Brothers until the Day of Resurrection. This being so said:
The ruling varies according to whether the partnership had the condition of the worker’s presence while doing his work as a fundamental condition for partners. Thus when the worker is absent he would thereby no longer take part in the partnership, considering that there is no physical work in it unless there is an excuse that forbids annulment such as in case of illness. On the other hand, if the partnership is based on money where the partner should not necessarily be present physically, then if the contract did not include a specific period, the worker remains [in the partnership] until otherwise is confirmed, according to the rule of: “Maintaining the initial situation”. It is not permissible for them to cancel the contract with him unless after informing him, then dissolving the partnership and separating from him by returning his capital that he invested in the partnership, including the profits of his capital and his gains, on account of what they have agreed upon. If the second possibility happens, then you have the right of demanding for all the deals made in which your money was used, as long as you do not concede them.
This is what appears to us from the context of your question, yet the true ruling and choosing one of them (i.e. the two possibilities) is bound by what you have stipulated in the first contract.
The perfect knowledge belongs to Allah–عزَّ وجلَّ–; and our last prayer is all the praises and thanks are to Allah, the Lord of the Worlds, and prayers of Allah are to Muhammad and his Family, Companions and Brothers until the Day of Resurrection.