What are the conditions under which purchasing goods on credit is permissible for a partner?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If a partner purchases goods using cash they possess that is equal in kind to the price, or cash of a different currency, or purchases an item for which they have an equivalent item in hand, it is permissible. This is because purchasing with the same kind of currency they possess is equivalent to settling from what is in their possession, thus avoiding an increase in partnership capital. However, if they do not have cash or an equivalent item of the type purchased, or if they trade goods for goods on credit, the purchase is exclusively for the acting partner; the profit is theirs, and the liability rests on them, as this constitutes borrowing against the partnership capital, which is prohibited.
Supporting text
The preferred opinion is that if the partner possesses partnership capital that they could liquidate to pay the price, the purchase is valid because they could settle the price from the partnership funds, resembling a situation where they had cash on hand. Furthermore, this is a common practice among merchants, and avoidance is impossible. There are two views on whether they can engage in profit-sharing (ibda') or depositing goods (ida'). One view allows it as a trade custom or necessity for deposit; the second prohibits it as not being part of the partnership and involving undue risk. The correct view is that depositing goods is permissible when necessary, as it is a necessity of the partnership, similar to entrusting goods to a porter.