Giving a shop on contract

Question

Question: There is a shop of motor parts holding fifty thousand worth of goods, in which several people are partners. The partners together gave it to one partner on the terms: “You may run the shop for five years; every year you will have to give us fifteen thousand.” The partner who takes the shop may, if he wishes, return it after two years. On the expiry of the five-year term the shop together with the goods will be taken back and will become the joint property of the partners.

Answer

This form is wrong; it is impermissible. The permissible way is that the share in the profit of the one who does the work be set somewhat higher on a percentage basis, and the rest of the profit be divided among all the partners in proportion to their shares; fifteen thousand a year should not be fixed — it is in the knowledge of Allah Most High alone how much profit there…

Source: Fatawa Mahmudiyya

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