Abiding by the Terms of the Transaction in a Loan or a Partnership

Question

My husband’s younger brother has a motor workshop in which four people had a share. After some years he dismissed three of them. Now he needed money to carry on the work further; he came and said to us: “If you have some money, invest it; I will give you three hundred rupees a month.” We had no cash, so we sold a house worth sixteen or seventeen thousand for six thousand and gave him six thousand rupees; therefore no receipt or the like was taken, nor was the money handed over in anyone’s presence.

Answer

The money must be paid according to the same terms on which the transaction was made. Whatever has been given may be counted in the reckoning, but after giving it the whole matter cannot be closed, since the transaction was either one of partnership or of loan: if it was a partnership, abiding by it is binding; if it was a loan, abiding by it is binding as well.

Source: Fatawa Mahmudiyya

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