Nullity of Liability Condition in Limited Partnership Contract in Islamic Banking

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Abstract

One of the bank contracts which is significant in both allocation and equipping of sources is limited partnership contract. The agent in this contract is considered as trustee and his claim on termination of stock without being excess or negligent is accepted. He would be agent‘s associate in both benefits and losses. Therefore this contract won’t have an economic justification in banking operations, so in order to keep limited partnership contract in banking contracts and also put the liability of stock on the agent, the Islamic researchers have suggested some solutions like condition of liability to be brought as an implicit alternative contract. However, two aspects are to be considered for validity of condition of liability first, it should not be against the exigency of the contract of liability and second it should not be opposing with Quran and narrations. Although some are arguing about the nullity of condition of liability if it is against the exigency of contract, we will try to review and discuss about that theory based on narrations and approaches of lawyers and Islamic scholars and finally we would suggest a new theory which is called “disaccord of condition of liability with Quran in limited partnership contract”.

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