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Fatwa CenterPartners Bear The Loss In Proportion To Their Contributions To The Capital
Question
As salaam alaikum wa rahmatullahi wa barakatuhu. My scenario- I leased a property for 10years and invested to build a complex in it. Since i was short of money, a person invested money(Eg: $100). In exchange, i give him a specified amount (Eg: $5) for how many ever years i earn from that complex. When i dont have the land anymore, i dont even give the person profit and in the end of the lease i do not give the person his initial invested amount as well($100). He will only earn from the agreed amount every month($5).
I heard if profit is given in fixed amount and not percentage of what is earned(as in this case), it is haraam. And also heard if the initial investment is not given back in the end(this case again), then the deal is halal.
I am Confused with these 2 opinions, Is this halal money? Any suggestions to make it halal?
JazakAllah
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
The valid form of this transaction is that he (your business partner) contributes with his money and you contribute with your money and effort, and in return, he receives a percentage of the profit, not the capital, rather than a fixed sum in the event of profit, and when the partnership ends, his capital is returned to him if no loss is incurred. If the joint venture incurs a loss, both partners bear the loss in proportion to their contributions to the capital. This transaction is a joint venture (partnership) and Mudhaarabah (co-partnership). Ibn Qudaamah 
said in Al-Mughni: “Chapter: Section Four: the two parties contribute with money to the capital, and one of them contributes with his effort as well: this transaction is a joint venture (partnership) and Mudhaarabah at the same time and it is valid.” [End of quote]
As for the transaction described in the question, it is not valid.
For more benefit on permissible Muraabahah, please refer to Fataawa 216769, 131558, 92631, 92426, 90516, and 6945.
Allah Knows best.
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