Is the element of sharing profits among the partners necessary to establish a partnership? - a comparative analysis between common law partnership and the Shari’ah law

Abstract

Certain contemporary Shari’ah scholars claim that the British Partnership Act 1890, that is the governing law of Sri Lanka as well, resembles the rulings that administer shirkah (partnership) format under the Shari’a. It is therefore, the objective of the study is to explore the above claim by undertaking a comparative study between the Act and the relevant Shari’ah principles. Adopting library and online research methodology, the study in respect of the subject has revealed that, whereas there are parallels between two diverse laws, certain conflicts that are incompatible with the teachings of Shari’ah have been identified more specifically in terms of the definition of partnership. The conflicts identified to be incompatible with the principles of Shari’ah can be reconciled by introducing similar provision as arranged in section 246 of Sudanese Civil Transactions Act 1984.