Corporations and Partnerships with Respect to Ribbit: Difference between revisions
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Corporations and Partnerships with Respect to Ribbit (view source)
Revision as of 20:22, 13 July 2020
, 13 July 2020→Obligation of the Agent to Watch the Money
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====Obligation of the Agent to Watch the Money==== | ====Obligation of the Agent to Watch the Money==== | ||
# The agent investing the money on behalf of the investor is considered a paid watchman ([[shomer]]) since he is being paid for his work.<ref>Shulchan Aruch Y.D. 177:5</ref> | # The agent investing the money on behalf of the investor is considered a paid watchman ([[shomer]]) since he is being paid for his work.<ref>Shulchan Aruch Y.D. 177:5</ref> | ||
====Obligation of the Agent to Invest the Money==== | |||
# The agent should only invest in whatever was agreed upon in the iska agreement.<ref>Tosefta b"m 4:21 establishes that someone who takes an iska arrangement can buy any type of food or animal and not utensils or wood since they was the stipulation. Shulchan Aruch Y.D. 177:38 codifies this. Taz 177:66 explains that there is another possible reason to forbid an agent from investing in a type of investment and that is because it is a bad investment. Chelkat Binyamin 177:289 expands this halacha to include any stipulation they agreed to.</ref> | # The agent should only invest in whatever was agreed upon in the iska agreement.<ref>Tosefta b"m 4:21 establishes that someone who takes an iska arrangement can buy any type of food or animal and not utensils or wood since they was the stipulation. Shulchan Aruch Y.D. 177:38 codifies this. Taz 177:66 explains that there is another possible reason to forbid an agent from investing in a type of investment and that is because it is a bad investment. Chelkat Binyamin 177:289 expands this halacha to include any stipulation they agreed to.</ref> | ||
# If the agent is paid to spend all of his time working on investing the money then he isn't allowed to invest for himself on the side. If he does and profits, those profits belong to the investor.<ref>Tosefta b"m 4:13, Shulchan Aruch Y.D. 177:29, Netivot Hamishpat CM 176:20, Chelkat Binyamin 177:234</ref> | # If the agent didn't fulfill his obligation to invest the money the investor can justifiably be upset with the agent but nonetheless, the agent is exempt from paying the investor anything more than his capital.<ref>Shulchan Aruch Y.D. 177:40</ref> | ||
# If the agent is paid to spend all of his time working on investing the money then he isn't allowed to invest for himself on the side. If he does and profits, those profits belong to the investor.<ref>Tosefta b"m 4:13, Shulchan Aruch Y.D. 177:29, Shach 177:44, Taz 177:67, Netivot Hamishpat CM 176:20, Chelkat Binyamin 177:234</ref> | |||
# The agent must invest all of the funds and even though half or a portion is considered a loan that doesn't mean that the agent can use it for his personal expenses. Furthermore, he may not even leave the money in a security deposit instead of investing it.<Ref>Shulchan Aruch Y.D. 177:30</ref> | # The agent must invest all of the funds and even though half or a portion is considered a loan that doesn't mean that the agent can use it for his personal expenses. Furthermore, he may not even leave the money in a security deposit instead of investing it.<Ref>Shulchan Aruch Y.D. 177:30</ref> | ||
# The agent may not invest the investor's portion of the money in one investment and his portion of the money in another investment; rather he should invest everything in the same investment(s).<ref>Tosefta b"m 4:19, Shulchan Aruch Y.D. 177:37</ref> | # The agent may not invest the investor's portion of the money in one investment and his portion of the money in another investment; rather he should invest everything in the same investment(s).<ref>Tosefta b"m 4:19, Shulchan Aruch Y.D. 177:37</ref> | ||
