Ruling 2161 — Partnership (Shirkah)

A partner who has been vested with the right of discretion over the capital must act according to the partnership contract. For example, if it has been agreed with him that he will buy on credit or sell by immediate payment or buy the commodity from a particular place, he must act according to these agreements. However, if no agreement has been made with him, he must conduct transactions in a normal manner and do business in a way that will not harm the partnership.