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The question

Is it permissible for the company owner not to pay the other party the agreed-upon financial amount upon termination of the partnership?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

An agreement between two parties regarding money in exchange for promoting a product and bringing customers is a ju'ala contract (contract of commission). Ju'ala is the naming of a known sum of money for someone who performs a permissible act for the ja'il (commissioner). It is a condition that the commission (ju'l) must be known; if it is unknown, the ju'ala is فاسدة (voidable/invalid), and the worker is entitled to ajr al-mithl (a reasonable wage). The contract could also be an ijara (lease/hire) for a work of a specific duration, and a condition for its validity is that the wage must be known. The majority of scholars do not permit a broker's fee to be a percentage.

If the contract is an ijara for a known period, it is binding, and the employer is obligated to pay the wage for the agreed-upon period upon termination of the contract. However, if the contract is ju'ala, it is permissible but not binding, and either party may revoke it at any time. If the commissioner retracts after the worker has begun the work, he is obligated to pay the worker ajr al-mithl for his work. In case of dispute, the matter is referred to the Sharia court.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
166152
Imported
Translation status
Source text, unreviewed
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