A partner stipulating that the other partner not compete

اشتراط الشريك على شريكه عدم المنافسة

A question about a partner stipulating that the other partner may not set up a competing business during or after the partnership, in which Jordan's General Iftaa Department answered that the condition is valid and binding during the partnership but void and without effect after it ends, while a former partner still may not harm the company or take its clients. The Department answered that among the established rules is that the contract is the law of the contracting parties, and that a partner stipulating a recognised condition serving a real purpose, such as not setting up a similar business during the partnership, is a valid condition that must be kept, citing a hadith reported by al-Tirmidhi that Muslims are bound by their conditions except a condition that forbids the permitted or permits the forbidden. It said this condition is valid because it secures a benefit for one party and protects him from harm. It held a condition barring competition after the partnership contract has been dissolved to be void and without effect, because it restricts the partner's right without just cause, citing the agreed-upon hadith that any condition not in the Book of God is void. It noted that after the partnership ends a partner still may not harm his former company or take its clients, relying on the hadith reported by Ahmad that there is to be no harm and no reciprocal harm.

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A question about a partner stipulating that the other partner may not set up a competing business during or after the partnership, in which Jordan's General Iftaa Department answered that the condition is valid and binding during the partnership but void and without effect after it ends, while a former partner still may not harm the company or take its clients. 1

The question

The questioner asked about the ruling on one partner stipulating that the other may not compete by setting up a business similar to the company's, during the partnership or after the partnership contract ends. 1

The answer

The Department answered that among the established rules is that the contract is the law of the contracting parties, and that a partner stipulating a recognised condition serving a real purpose, such as not setting up a similar business during the partnership, is a valid condition that must be kept, citing a hadith reported by al-Tirmidhi that Muslims are bound by their conditions except a condition that forbids the permitted or permits the forbidden. 1 It said this condition is valid because it secures a benefit for one party and protects him from harm. 1 It held a condition barring competition after the partnership contract has been dissolved to be void and without effect, because it restricts the partner's right without just cause, citing the agreed-upon hadith that any condition not in the Book of God is void. 1 It noted that after the partnership ends a partner still may not harm his former company or take its clients, relying on the hadith reported by Ahmad that there is to be no harm and no reciprocal harm. 1

About this record

Jordan's General Iftaa Department published this fatwa on aliftaa.jo as no. 3982, dated 3 July 2025. 1 The museum records this text as a historical document attributed to the body or scholar that issued it; it issues no ruling of its own.

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Partnership (sharika)

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Deducting a broker's fee from the price of heirs' land· Launching an initiative that encourages buying local products· A school canteen manager taking supplier bonuses· Borrowing company shares· A teacher who wants to work without an underperforming platform partner· Partnership (sharika)

Sources

  1. Jordan's General Iftaa Department (aliftaa.jo) , fatwa 3982

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islam.museum contributors. “A partner stipulating that the other partner not compete”. islam.museum, https://islam.museum/en/work/fatwa-aliftaa-jo-a-partners-non-compete-clause/. CC BY-SA 4.0. Last updated 2026-11-01.

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Deducting a broker's fee from the price of heirs' land

A question about land jointly owned by heirs and sold through a broker, in which Jordan's General Iftaa Department answered that the broker's fee is deducted from the price before division, each heir bearing it in proportion to his share, provided all the heirs agreed to sell through the broker. The Department answered that heirs are joint owners of the estate, and in joint ownership each partner bears costs in proportion to his share, since liability follows gain; the broker's fee is a cost of dividing the estate, and it quoted Zakariyya al-Ansari's Asna al-Matalib that a divider's fee is split by shares, not by heads. It said that if the sale was made with the permission of the father's wife's heirs, they bear the broker's fee with the other heirs, since a broker works only for a fee, and what is customary counts as if stipulated. It concluded that the broker's fee is deducted from the land's price before division if all the heirs agreed to sell through him, and this applies to the father's wife's heirs too, as long as they agreed to the sale.