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Channel: Isam Rajab
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Smart mama hamdulillah salatu salam ala rasulillah Allah Allah sagarmala Welcome to the class of today inshallah, we will try to finish the book of financial transactions.
We will start with companies or what we call partnership
there are one, there are five different types of companies, but in the Shafi school of thought one of them is is permissible, the remaining four are not permissible. Therefore, we will discuss only this one, and inshallah next year, we'll discuss all five of them.
But first of all, what's the definition of competence?
linguistically, and in the Islamic law,
I grew up
more than one.
Now, an Arabic company or sharika, came from the word Shahrukh.
Does that ring a bell?
But what's the reality of shark?
Shark means gathering or mixing, mixing
more than one in the term it is mixing? That's the meaning in the language linguistically.
Yeah, we call mixing. That's the meaning of sharika. But in the Islamic law,
as I said,
Sherry Catalan and that's the only allowed company which is called the cooperative company.
What does it mean? It means a right that is shared by more than one without restrictions
That's where it came from. I gave you the permission to do the actions. And the same thing you give me the permission to act in this company.
That's the meaning, or that's the definition of the company.
the Islamic law, again, according to the Shafi school of thought, all right, that is shared by more than one
because if it's only one, it's not sharika anymore, it's not company, it's only one person
without restrictions, if there are restrictions, then it is not sharika.
If there are restrictions, then there is an employer and employee. But here there is companionship, there is a company without restrictions in actions in actions.
This is the company now very important thing.
The company is an optional contract. What do we mean by that?
The company is an optional contract.
I came to a sham. And I told him
what do you think of this project?
I am very convinced that it is profitable project.
And he looked at it and he said Yeah, I agree.
So let's, let's establish a company, I will pay 50% and you will pay 50%. We agreed. We paid the capital and we started working, he does a job and I do a job.
After five months. I said you know what? I don't want this company anymore.
So I terminated
Is that permissible?
With restrictions, what are these restrictions? If the company is to be
If you agreed on previous
so is it like the rent, if we agree on a rent for two years
for long term gain because if you invest a certain amount of money,
gain that money back at least the money back there is a client How long does it take you
to start producing game? Well, that's called the
To the type of business you are dealing, in general, as I said, the company is optional contract. We mean by optional, that
you can terminate it anytime you want. That's the meaning of option.
That's the meaning of option.
Yes, you may say in some cases, we cannot do that. And if you agree on it,
can Muslim and Allah shorten according to the conditions? That's fine. But in general, in principle, the company is optional. I chose to be your partner. Now I chose not to be your partner. You cannot force me and tell me no, you have to be my partner.
Yes. Now why I said optional.
There is another type of contracts, which is what?
obligatory, mandatory likewhat.
We have to go through every single
transaction we studied so far.
Is it optional or obligatory?
Let's go back last week, what did we take?
Okay, sponsorship, I came to Hashem and I said, I sponsor a sham. If he did not pay,
I will pay I am his sponsor.
few days, I said,
I don't want to sponsor him.
And we don't know what is a sham. Can you do that? So it is what
For the one who was getting it, yeah, you wanted to give me something? And I said, Thank you, I don't want it. It is what
What about the giver?
You don't have to give. But once you give, can you take it back?
No, you cannot.
In the case of other in general, we're talking about the journal you cannot. So what is what is optional or obligatory?
From the side of the giver it is obligated from the side of the taker it is optional
obligatory we agreed on six months after two months, I said it is obligatory
What did we call a
optional or obligatory?
Both of you are wrong.
We said you have to distinguish between
what is between you and the law and what is between you and people fits between you and the law, it is what
between you and people it is obligatory and so on. Now, again, it is very important.
Is it an optional or obligatory?
what they are, what they are.
So that makes it What?
For both sides?
Yes, for both sides. It is optional. I came to you. I told you please save this for me for one year.
You said fine. I'll save it. After six months. You said listen, come on and take it back. Please. I cannot keep it anymore. Can you say no? You promised to keep it for one year? Yes, I promise but there is something happened. The same thing. I came after six months and I said listen, please give it back to me. I need it. Can you say no? No. You have to keep it until one year.
deposit is option?
For both, it is optional for both.
Listen, that's not how we look at it.
Of course he has to give it back.
If you agreed on a rent,
don't you have to pay the rent?
It is obligatory but not from that aspect.
We mean by optional and obligatory Are you liable for anything or not?
Okay, Is this clear? What What do we mean by optional? Yes.
You go to a judge and you tell him cleanse me. I drank alcohol.
And then you say,
and he tells you come after two days. And you don't go. Or after one day. Before one day of the punishment. You come and say I was wrong. I did not drink alcohol.
Yeah, he cannot. cannot say no. You already confessed.
Yeah, the woman aloha media.
Yeah. Yeah. Why didn't you live in nice rhodiola. Han, who was stoned? Yeah.
This is an example.
If one partner died
if one partner died,
the heirs are the new partners,
the heirs, the family of the ones that will inherit from?
no. Why we already said it is optional, right? Once the partner dies, the company's worth over.
Unless he wants to.
Because that's the meaning of optional. I was your partner.
I was not the partner of your heirs.
But can we say this also in the rent? I gave you the lease for you, not for your heirs. So if you die?
Can we say the same thing?
Again, that's the difference between optional and obligatory.
Since the company is partnership is optional.
You're not born to the IRS? Once someone dies, that's it.
The company's off unlike the rent, the rent is obligatory.
The conditions of company
what are the conditions of the company
to be established by money?
What do you mean by money?
Okay, just try them and then we'll discuss them. The second condition to be of the same type from both sides.
Like I cannot give
$100 and you come and give two bags. So we have a company of $100 and two bags. That's not a company
has to be from the same type from both sides.
And then to mix both monies that's the the core of the company that both monies are what
they are mix, because if I say I put 100 and whatever comes from this 100 is mine. And you put 100 whatever comes from that 100 is yours then this is another company
from both sides, same type of money.
Again, I give the example. You don't bring $100 and I bring two laptops. And you say this is a company established by $100 and two laptops, that does not work
to allow each one to act freely.
What do we mean by this?
What do we mean by this to allow each one to act freely?
No, we're not talking about the profit we're talking about. Yes.
Yes, they can act like they can take decisions, whatever they want. That's the concept of a company that we work together. Instead of one person we are together, we take decisions, like, and it will affect both of us. If we say there are restrictions again, then it's not the company. The one who puts the restrictions
is the employer and the one who is restricted, he is not a partner anymore. He is what
that's the company we agreed on, like boundaries for both of us, not for you. And that's the meaning. Number five, the ratio of the profit
and loss is according to their monies.
Let's say I put 50%.
If I put 50 or put, I put 60. And you put 40.
Then the profit should be how,
for me, for me, 60 for you, 40. But what if I put 70 and you put 30. And you say, the profit is 5050?
If we agree, we both agree.
In general, it should be permissible. But in the Shafi school of thought they say no, has to be according to the money. Because sometimes we agree maybe I know that you are skillful, you are,
you know what you're doing? So I'm willing to give you more than what you put?
These are the five conditions of the company.
No, actually, that's the true companies. Any company nowadays, the problem when they put many restrictions, you don't have really like,
but always in the top, in the company, the tops. If it's real company, that's how they work.
You can make a decision for the company without consulting,
consulting, but not like,
Well, again, that's the company what what we call now companies may or may not be necessarily companies, it is establishment. But this is the condition. Yeah. Because again, what do you mean by company? Both of us, both of us exactly. Nowadays.
Nowadays, what happens? We say it is a company, but actually even if you are the CEO, you're not the owner, you're what
your CEO means your employer, and if the Board of Trustees or whoever decided to fire your fire, but here you are the owner with him. So I take a decision for both of us to take a decision for both of us, that's the company that's the company nowadays, what they call company may not be necessarily companies.
The first one to be established by money, I did not explain.
To be established why money means money that is generating money. Can we establish a company by like
even assets assets is money and it generates money.
But like milk
if we don't if we don't, it will perish if we don't. So it cannot happen. That's the meaning of number one.
I mean, they are clear, I believe they are clear. We may agree on some of them. We may not but that's the these are the conditions of the company.
The next thing we have today is lost and found.
Or the last articles.
You're driving your car
and it happened that you had a flat tire. So you had to pull over.
Once you pulled over, you open the door.
what do you do?
You look around. No one is watching you. Take it
Angeles is supposed to keep you for certain amount of days. Keep them keep the money for a day's work in the street with you. So you take the money is supposed to take the money in Are you talking about in our religion or
in talking about Islam? Hello discussing once we discuss something else we will I remember we were
supposed to keep it I can remember was it 10 or 30 days until someone and we don't touch it you don't spend it. See if someone asked for it.
And if no one asks for it, and you ask around it is yours. Someone has
Remember, it was okay. What do you think?
Okay, you kept it for one year.
You are able to use it? Yes.
Now I gave an example for $200 you're driving
and the plains of Texas in the country.
And on the side of the road, you found a lost sheep
what do you do?
And you found the lost sheep. What do you do?
You keep driving?
why it was maybe $500 more than the the $200 that
you won't do anything What do you think is it the same ruling is different?
Sir from California
oh he's not from
what did he say exactly.
So, you take it
I just wanted to give you an example that they are different. We have four types of last articles
what remains? What do you mean by what remains?
If you keep this $100
like it was underneath a stone is there anything will happen to it?
It will be there. If you come next day no one touched it it will be there. If you come next year it will be there
what expires like what
yeah food you went and you found like a
gallon of milk
or nice meal what can they mean with work
which means it needs some efforts.
But it it can stay like what the dates now this is food right. But
it needs to be refrigerated and it will it will remain
No, the sheep is number four.
It requires expenses. Why because the sheep it needs what
needs food needs place
you need to take care or someone to take care of it. So this is what it requires expenses. So these are the four different types.
And the ruling in general is the same but there are differences. Rule number one, first of all, rule number one, if you know from yourself that you are trustworthy
and if you kept the money
if you kept the money and did not take it if you left it and did not take it. Someone else will take it then in this case. It is recommended for you to take the money. Do not leave it
Why, because there is a possibility that someone else will come who is not trustworthy and he will take it.
So, this is rule number one, if you know from yourself that you are trustworthy, and if you left the money, or the last article
it will be taken, then
it is better for you to take it.
Rule number two,
if you found this article of property in a place where most likely no one else will come to take it,
then it is better to leave for
you're driving on the highway, then you took
a side road that's almost deserted, no one is there.
And you found
on the side of that road
stack, you opened it and you saw there is money.
Leave it? Why? Because no one goes here. That means the person who lost it most likely he will come.
You don't fear that someone else will come and take it.
This is Rule number two.
Rule number three,
you always do what is better for the owner of the article, not for you your own self. What is better for the owner of the article, you treat him like you treat yourself. So,
if you found
a sheep and you left it
and most likely in that area, it is in the wild. So
wild animals will come and may
prey or may hunt that sheep do you leave it? Or do you take it?
You leave it for them?
You take it you don't leave it
the last general rule
whatever you take remains the article of
the one who lost it, not yours.
It is his
Fun you try while you try and write.
And if you yourself lost something.
That means that's it, you will never find it. That's why we as Muslims, we should help each other We are brothers to each other.
We don't once we lose something, that's it, it's lost.
It's not yours to begin with. It is his.
So here's the example now, let's go back to the $200 you came and you found $200 what do you do?
The first thing you try to ask on the place where you found it?
Did anyone lose 200 You don't say 200 but did anyone lose money?
You ask? scholars say first day you ask many times not only one time
then for one week, you ask twice a day or
less than the first day Why? Because usually once you lose something
once you remember it you will ask about it. So the one who lost the $200 he will keep asking for the first few days. Then later on after one week, most likely
until one year
there won't be
maybe he will come and may not.
So you ask frequently but unlike what you used to do for the first day or for the first week.
Now again all these are understood from the Hadith of the messenger Salim there is no specific amount of time. How much time do you wait?
After one year, what do you do?
Whether you use it or you keep it
it is kept for one year or more because even if you spend it after one year
And the owner came, and he knew that he is the owner of those $200. What do you do?
You have to pay him. You cannot say, I asked for one year and no one came.
Coming to this.
Okay, so was it yours or his?
It was his
it for one year? And
let's say we're talking about $10,000. Okay, $10,000 he spent it. But
he can't pay back after five years a person came and said,
Where's the money? And he said that you found that?
Well, again, you cannot you cannot use the money. It's not yours. Once you use it, you use it with them with the condition that you are liable for it if the honor came the real honor. Because what if you left it?
Are you able to use it? Is it your money?
After one year, again, after one year, it doesn't become yours, but you are given the right
to use it?
Yes, this is this pertains to item number one, item number two,
it's up to you, whether you live it and it will expire. Or you use it and you're liable for the value of it if the honor came.
If the owner came, and he asked about it, you're liable for
the value of it.
number three, if you leave it, it will expire. But if you take it will remain
with some work. So again, it's up to you.
You can take it and your work a little bit
you can leave it
it needs expenses. So, if you pay anything,
you will take it back these expenses.
You did not have to do it, but you did it. So you take it back these expenses, you return the article, and you take the expenses.
Now comes the question
like a sheep, you took a sheep and that chip was pregnant.
And you fed that sheep and then after one year instead of one you had four sheep.
So the owner came
and he said what is my sheep? You tell him this is your sheep and there are three extra sheep came from it within one year. Those are mine.
And he said No, those are mine.
What do you think? Yes.
They are the owners. Why?
Okay, so it is the ownership originally, but
didn't this person work on them? If he left it, he may never had four sheep.
Yeah, the sheep would have died and he had no guess.
The second person?
No, it is in the Quran.
Yeah. And he gave it to him.
Yes, but that's his money.
That's wages. That's not something lost. And he found it. And he took care of it.
Yeah, that's agreed upon the expenses. You take it
Back to the expenses.
Think about it. This is your homework for today.
Yeah, tomorrow I'll see the house, go back read the Hadith.
If you have book have read what they said.
Now the last thing we will discuss is the endowment. And the endowment is really very important.
And unfortunately, nowadays, especially here and in the West,
it's almost lost this concept of endowment is lost. Now, you earlier mentioned a lot insurance.
One of the best ways to help Muslims is endowment, we can establish
an endowment for insurance.
How it works, our fee person comes and says,
this shop or this project, this business I have all what comes from it all what is all profit
is in this endowment.
Who's the beneficiary?
The people who have cars, and they cannot pay for fixing their cars because of accident.
If we wanted to build the masjid here in America? What do we do?
Exactly? What do we do? fundraising.
in Kuwait, there was a man
who inherited money
from his father.
And he was righteous, and they needed to build a Masjid in that area. So his friends were happy, very happy. Why? Because now the message will be built.
But he said, I want to build a muscle.
They said, How come? They said, that's it. I want to build the muscle. So what did he do? He built more
instead of mustard.
He made conditions of course on the owners of the shops in the mall that no one sells anything for within
three years. He built for muskets instead of fun mustard for messages.
He was very smart.
Until this very day, that mall
is generating money.
And it is paying the expenses of those former students.
This mentality I don't know why we don't have it. I mean, we are very smart when it comes to our children when it comes to our own selves. But when it comes to the Muslims, I don't know what's the problem. Every time we need money, let's go for fundraising. donations, until when
the prophet SAW Selim on Amaro de la Juan asked him what to do with his piece of land he, he gained a piece of land property in hiber. And he said, that's the most beloved thing I got. So what should I do with it? After Selim told him to do it as endowment in the hubster US law,
the ownership of the land will be kept, no one can change it. Whatever comes from this land, this year, we planted whatever corn, wheat, whatever, and it is spent in charity. Next year, whatever and it's spent so you are getting the reward forever.
The prophet SAW Selim said when you die, your deeds will stop. Except for three things. One of them was what? continuous charity, what's the continuous charity? The first thing comes to mind endowment.
Now, in the early Islamic age,
they were very, very civilized more than now.
In Damascus, in Syria, they had endowment, very large land.
Do you know for what, not for humans, for disabled animals.
any animal who's disabled whose honor cannot take care of it, and that property and there is food there is everything.
Disabled animals, there was endowment for dishes. It was called waqfs. Abadi.
There were slaves. So if
any slave taking, getting a dish, with food or with something or without anything
And that dish was broken. She's always asleep, they cannot afford even the dish. They go with the broken dish, and they give them a new one.
That's the endowment. There were endowments for all students of knowledge.
Someone rich, he wanted to invest
the real investment for the sake of Allah subhanaw taala. He says whatever comes here for the students of Imam, Abu hanifa, Madhava from hanifa students for the Shafi that's how scholars could
provide for themselves, they were busy 24 seven with knowledge. They already had the endowments. Nowadays, we lack this concept. Again, whenever we need some money,
donations, fundraising until one now imagine that's that's the thing.
Instead of you purchased a land
and you wanted to build a Masjid.
Now you can build two acres Masjid, or you can build one acre Masjid and one acre apartment complex.
And whatever you get from the apartment complex is paid for the masjid.
Would you be anytime in need for donations? Why? Because that that apartment complex is endowment for domestic, or what we call nowadays trust.
This is very, very important.
And believe me, it doesn't have to be large amount of money.
You could make endowment only from one apartment.
You owned one apartment.
And you said this is endowment that means this thing is remaining this apartment. Every month, there is money coming. And this money will go to the endowment that you specified for the poor people. For the students of knowledge for the prison people for the divorced woman four. It could be for anything.
But the problem. I don't know. I don't know really? What's the problem? Why people only focus on fundraising.
No, actually, it's not less I believe it's more headache.
They won't run the business. Actually, when you have endowment. You will get more money.
Yeah, the people who are running the foundation, maybe because they are only two or three year member or that's the so I don't know. I mean, we need
Yeah, we have a problem here but we don't have to have 10 members foundation one one person who can take the initiative and everybody will follow. Again Imagine if if someone rich person
who Allah subhanaw taala, whom Allah Subhana Allah has given lots of money.
And he purchased the land four acres and he established apartment complex with 200
And he rented them for $500 every month. How much is that?
20,000 or 200,000 200,000?
Yeah, $200,000 every month,
you are generating $200,000 every month. And he said whatever comes from this apartment complex is for this project.
This will be forever Even after his death. Its endowment it cannot be changed.
Yeah, you give it given take about 10 years. And
no, you cannot. That's the thing of endowment. What I've seen the problem and this is from personal. And you probably seen that you went around as much as I did. Our problem in the Muslim or the Arabic countries is not there.
Well, we're talking about here at least.
Yeah, unfortunately most of the environments like in Mecca. Even in Damascus, they are taken.
But again, what can you do? If there is no good administration?
Yeah. Why? Because you assigned someone as trustee. He is the one who's running and he looks he sees like $200,000 Why not take how
and then later on, but when you when you establish it very well, you will guaranteed that nothing will happen like this.
This is this is I mean shala, next week's hotbar it will be about in them, especially in Ramadan, we need to think about it.
It's that idea that he said about collecting money from
the community and building and start construction projects but building houses. Yeah. For other muscles. Yeah, that's an awesome idea.
they did that. But where I don't I don't know, the only place I have a new case.
I have been around like I traveled almost, at least at least 20 different states. I've been to many more streets. The only place where I saw this mentality in Phoenix,
Islamic center of Phoenix. They build the masjid. Like they took the cost. And let's say the cost was 1 million. They raised 1 million and a half instead of 1 million. With the half million they built three shops. That's until they're so the rent of the three shops is spent on the masjid. That's the only place I saw.
Yeah, well, well, how many? It's very few. Again, that's only one thing masjids but that's the only thing we need. We need millions of things. We need hundreds of things. Again, the insurance company, the mortgage, everybody's complaining about mortgage. Why don't we establish something for for the needy people? Why don't we establish endowment for the youth who want to get married? They cannot afford marriage. So every youth who's intending to get married we check his his case. He gets $10,000 it is done in many places in the Middle East and Gulf countries it is done
I heard they they have this the non Muslims they have it but I don't know. Yeah. We it we had it we had it imagine we had it to a level that there is not no more to be spent on Muslims on human beings. It is spent now on disabled animals.
Not only animals disabled animals.
Why? I don't know why.
It's one of the best charities and it is from the time of the messengers or encourage the home or the land to do it.
Yeah, inshallah next hot Well, I'm determined to talk about it inshallah. That's my intention.
Because I have, well, I have the project everything but I need the money.
No, no, not now, later. These are the conditions for permissible endowment now. Okay. Again, not everything you can make it in government.
The article of property remains while it's used, what do you mean by that? You cannot say these are 10 gallons of milk endowments. Why? Because once it's used, it will perish there is no more milk. So, this cannot be endowment the article itself has to be remaining.
Number two, the permanence of the outcome and the presence of the capital.
What do you mean by that? Now, instead of 10 gallons of milk, you may say
milk factory, that's endowment where we have cows and we have machines and we are generating milk. So, the milk is generated every time and the capital is there. The property is the land the cows are there.
Number three, it has to be on a permissible thing.
Can I make endowment for alcohol? Wherever casino whoever wants to be drunk or whoever whoever wants to gamble? No, you cannot. It has to be permissible thing.
Okay, we'll stop here inshallah, is there any question Sharla Next.
Next week, we will start with the book of marriage.
Is there any question
so now I want to lamarca