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 19:52, 13 July 2020
, 13 July 2020→If the Agent Breaks the Stipulations
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====If the Agent Breaks the Stipulations==== | ====If the Agent Breaks the Stipulations==== | ||
# It is permitted to create whatever conditions the investor would like upon the agent and if the agent doesn't follow those conditions then the agent takes responsibility for all of the losses and the gains continue to be split as before. Indeed it is permitted for the gent to not follow these conditions.<ref>Rama Y.D. 177:5. It isn't considered as though the agent stole the money since he is doing so for the benefit of the investor (Shulchan Aruch Y.D. 177:5, Taz 177:10). </ref> It isn't considered more beneficial to the investor (''karov lsachar vrachok mhefsed'') since he can only gain and not lose because the original made it possible that it would been a regular iska.<ref>Shulchan Aruch Y.D. 177:5. Shach 177:17 clarifies that this is only permitted since an iska is only rabbinic interest to begin with.</ref> | # It is permitted to create whatever conditions the investor would like upon the agent and if the agent doesn't follow those conditions then the agent takes responsibility for all of the losses and the gains continue to be split as before. Indeed it is permitted for the gent to not follow these conditions.<ref>Rama Y.D. 177:5. It isn't considered as though the agent stole the money since he is doing so for the benefit of the investor (Shulchan Aruch Y.D. 177:5, Taz 177:10). </ref> It isn't considered more beneficial to the investor (''karov lsachar vrachok mhefsed'') since he can only gain and not lose because the original made it possible that it would been a regular iska.<ref>Shulchan Aruch Y.D. 177:5. Shach 177:17 clarifies that this is only permitted since an iska is only rabbinic interest to begin with.</ref> | ||
## If the agent explicitly states that he is [[steal]]ing the funds for himself,<ref>Taz 177:11 notes that it is only effective if the agent states that he is stealing it at the time that he used it for himself, however, afterwards he isn't trusted to say he stole it as opposed to merely used it for the benefit of the investor against the conditions of the investor. Although Nekudat Hakesef 177:5 disagrees the Bear Heitiv 177:12 points out that this Nekudat Kesef is very difficult to understand. | ## If the agent explicitly states that he is [[steal]]ing the funds for himself,<ref>Taz 177:11 notes that it is only effective if the agent states that he is stealing it at the time that he used it for himself, however, afterwards he isn't trusted to say he stole it as opposed to merely used it for the benefit of the investor against the conditions of the investor. Although Nekudat Hakesef 177:5 disagrees the Bear Heitiv 177:12 points out that this Nekudat Kesef is very difficult to understand. Chelkat Binyamin 177:83 agrees with Taz.</ref> then all the loses and gains accrue to the agent and not the investor. To avoid this it is advisable to stipulate that if the agent steals the money for himself then he must repay it to the investment. Thereby all profits will continue to accrue to the investor. If the practice is allow the agent to take money for himself and repay it then it isn't necessary to make such a stipulation explicit.<ref>Rama Y.D. 177:5</ref> | ||
====If They Want to End It Prematurely==== | |||
# The investor may not dissolve the iska prematurely.<ref>Shulchan Aruch Y.D. 177:36</ref> | |||
# The agent should not break his part of the contract prematurely and doing so is considered dishonest,<ref>Chelkat Binyamin 177:282 based on Shulchan Aruch C.M. 333:1</ref> however, if he wants to he can.<Ref>Shulchan Aruch Y.D. 177:36</ref> If he so chooses, he is obligated to repay the invest his capital and any portion of gains or losses that accrued to his investment according to the stipulation.<ref>Chelkat Binyamin 177:281</ref> | |||
# If as a result of the agent backing out of the iska arrangement there is a tangential loss to the investor, besides the loss that is a result of the investment, the agent may not back out.<Ref>Chelkat Binyamin 177:282 based on Shulchan Aruch C.M. 333:5</ref> | |||
# The agent may not quit the iska arrangement because he is interested in getting paid a higher salary.<ref>Chelkat Binyamin 177:282 citing Rama C.M. 333:4</ref> | |||
# The above rules apply to the modern heter iska as well.<reF>Chelkat Binyamin 177:280</ref> | |||
====Alterations to Transaction before Maturation==== | ====Alterations to Transaction before Maturation==== | ||
