Arabic (شركة الوجوه) for a subset of sharikat al-aqd (liability partnership or receivables partnership) that constitutes a contract between two or more persons whereby they build on their reputation and prestige in addition to their commercial expertise. Partners buy goods on credit from merchants, with their reputation being a credit enhancer, and sell the goods for immediate payment. They share the financial results of the business according to the contribution of each to the credit enhancement or guarantee supplied by each of them. This type of partnership is solely based on credit backed by reputation, and hence doesn’t require any capital contribution.
Sharikat al-wojooh is considered permissible by some schools of thought (namely Hanbalis and Hanafis) since it encompasses a guarantee by means of agency (wakalah).
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