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Fatwa CenterRuling on renting a business name
Question
I would like to ask from you that, I helped on of my friend. He was interested to start a small scale business. The help which I did was that I sponsor him and to round small business under my name but all the legal expenses will be done by my friend as we agreed. As we agreed in written (same as I hire my license for my business to him) we also agree in written that I myself will not involved in your business and financial matter. Only my friend will pay me monthly fee in US $120/- the business run for hardly 16 months only and he just paid me for the period of 1 year only. Its not a matter. I close his shop and left back to his home country as he told me that he is not felling well and after 4 months he came back I did not show me a face the expenses for the shop was on my head, I called him and told him if you want to shut down the business no problem and I can transfer to another person he did not listen then I took a legal action and my friend did a case in court that I have to pay him US $1,980. So I also appointed an advocated and case is still in court sine 6 months now.
The main thing I want to ask you that did I took any money from him (I don't think so) or anything Haraam, or it is wrong to a case against him. I did many help for him he was in a big problem. Back to country his father requested me and now he did some different.
Now days I think in this world to help some one is also to get yourself in a tripe I'm worried every time please help me what I have to do either I am wrong or right.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
It appears that renting a business name is included within what the scholars
call the price of prestige. This is a matter of difference of opinion between the scholars. The most preponderant opinion in our view is that a person is not permitted to take monthly wages on this, but he is only permitted to take the wages of a person who does the same job like him in return for his necessary expenditures, his hard work and so forth. So you should know that you are not permitted to take the monthly wages that you have taken throughout the year as the matter is nothing but renting the business name.
As regards what you agreed upon in the contract, then the matter is as you agreed as long as it does not contradict the Islamic legislation, so none of the parties is obliged to do what is not stated in the contract as a Muslim is obliged to fulfil his conditions. The Prophet 
said: "Muslims should fulfil their conditions, except a condition that prohibits something permissible or allows something forbidden." [At-Tirmithi]
Finally, it should be noted that Muslims should reconcile over the disputes that might occur between them, as there is good in reconciliation.
Allaah Knows best.
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