Corporal (Working) Partnership: This refers to two or more persons sharing whatever they earn by their works. For example, they share in making a certain product, or tailoring, or washing, etc. Whatever income they receive from this, would be divided between both equally or according to what they have agreed to. The basis of permissibility of the corporal (working) partnership is the hadeeth recorded by Abu Dawud, Abdullah, Sad (RA) and Ammar (RA) made a partnership on the day of Badr concerning what they would get from the wealth of the polytheists.
Although Ammar and Abdullah did not get anything, Sad got two prisoners of war. Thus, the Prophet (salallahu alayhi wa sallaM) made them share in partial ownership of the two prisoners. This occurred before the legislation concerning the division of war booty. (This Hadith is authentic and Ahmad, Malik and Abu Hanifah all acted according to it.)
Rules of this partnership Both of them can demand the wages and receive them from the employer.
If one of them becomes sick or absent due to an excused reason, the earning of the other should be divided between both partners. If the absence anyone of them is too long or his sick leave delayed for a long period of time, the healthy (present) partner can co-opt a new employee in his place. His wages should be deducted from the share of the sick or absent partner. If anyone of the partners excuses himself from continuing his work, the other can abrogate the partnership deal.
Honouring Partnership Honouring partnership refers to two or more partners sharing in buying and they resell on their own. Whatever they earn from profIt or loss, they share equally in it.
Negotiable Partnership This type is more comprehensive than the types of profit-and-loss share, honouring, and corporal (working), as it comprises these as well as speculative partnership. Negotiable partnership refers to each partner authorizing the Other to deal freely, both financially and personally in every aspect of the partnership. Both are free to sell, buy, speculate, authorize, take legal action, and to travel with the property. The profit should be distributed among them according to their mutual agreement. The loss should be according to each partners financial contribution.
This article was culled from the publications of Deen Communication Limited