[Partnership return distribution]

Fatawa Question

As-Salamu `Alaykum. I live and work in the U.S. I recently entered into a verbal business agreement with a person from India. This person from India had provided some consulting services and made about $5000 for his services. He contacted me and asked me to help me out and to help him transfer this amount to India. He offered me business partnership and enticed me saying that there is a check of $ 5k which will be paid soon. We agreed that we will launch a new business with joint partnership with 50 / 50 profit / loss share and I agreed to send him the initial amount. To cash the check, I started working with him for about 2 months and helped him with his website, registered the business in US, did research on liability issues, dealt with lawyers, open business bank account etc. After the check for $ 5000 came, the business partner from India changed his statement that I don't have any share in the initial $ 5000 since he did all the consulting work and he had only agreed for sharing profits for future projects. Since this was just a verbal agreement, we don’t have anything in writing. I did agree to send him the amount but we never discussed the details about the exact amount. Also I only wanted to get involved because of the check that will be paid soon. I have full control over the bank account and the US company since the business partner is based out of India. My argument to him is that without me registering the company, getting tax-id, bank account, there was no way for the check to be cashed and for us to be paid. I want to pay the business partner from India 50 % of the profit share as per the initial discussion. Am I at fault here ? I have also provided 2 months of service to this person including helping identifying new clients but he just refuses to negotiate with me on $ 5 K amount. Please, help and advise. If I am liable to pay full amount that I will pay the FULL amount because I want to do the right thing here InSha’ Allah.

Fatwa

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Publication Date

2012-09-29

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Business
• Partnerships

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-733570

• APA
• MLA
• AMA