Corporations and Partnerships with Respect to Ribbit: Difference between revisions
From Halachipedia
Corporations and Partnerships with Respect to Ribbit (view source)
Revision as of 01:49, 17 August 2020
, 17 August 2020→If the Agent Breaks the Stipulations
| Line 89: | Line 89: | ||
====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 | # 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 agent 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). Ran teshuva 73 writes that if someone gives an agent money as an iska and the agent changes from the agreement, then if the agent losses the agent must pay the capital since the agent's changing from the stipulation allows the investor the ability to claim that he didn't administer such transactions. If he gains the agent must pay according to the stipulation of the iska.</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. 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 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 the agent is buying a certain investment for the iska, he can add his own private funds to buy the same commodity for himself as well. The agent must be careful that his adding his own private funds has no chance of hurting the investment of the investor. The same is true of selling.<ref>Tosefta b"m 4:21, Tur and Shulchan Aruch Y.D. 177:39, Taz 177:45, Shach 177:68</ref> | # If the agent is buying a certain investment for the iska, he can add his own private funds to buy the same commodity for himself as well. The agent must be careful that his adding his own private funds has no chance of hurting the investment of the investor. The same is true of selling.<ref>Tosefta b"m 4:21, Tur and Shulchan Aruch Y.D. 177:39, Taz 177:45, Shach 177:68</ref> | ||
