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ISKA CONTRACT

 

____________________ (hereafter referred to as the “Managing Partner”) has received ___________________dollars, from ____________________. (hereafter referred to as the “Investing Partner”) to be used for business purposes. The Managing Partner obligates itself to utilize these assets in a manner which it believes will generate profits. Any profits realized or losses sustained shall be shared equally between the Managing Partner and the Investing Partner.

 

Any claim of loss must be verified through the testimony of two qualified witnesses in, and under conditions acceptable to, an Orthodox Jewish court of law. Any claim regarding the amount of profit generated by these assets shall be verified under solemn oath before, and under conditions acceptable to, an Orthodox Jewish court of law.

 

It is agreed that if the Managing Partner pays the Investing Partner the amounts and on the dates specified in the contract as payment for both the assets and for the Investing Partner’s share of the profits which are generated, then the Managing Partner will not be required to make any further payment nor will any of its officers be required to make an oath. If payment is not made in accordance with the schedule of payments specified in the promissory note, the terms of this Iska agreement shall continue.

 

The Managing Partner has received one dollar from the Investing Partner as payment for its services during the term of the partnership.

 

In the event of any conflict between the terms of this Iska agreement and the terms of any other agreement signed by the two parties in regard to these assets and funds, the terms of this agreement shall prevail.

 

This agreement shall follow the guidelines of Heter Iska as explained in Sefer Bris Yehudah.

 

_____________________________________________     Dated _______________

 

_____________________________________________     Dated________________

 

 

Note: This Heter Iska was adapted from a model Heter Iska presented in Rabbi Yisroel Reisman’s book, “The Laws of Ribis: The Laws of Interest and their Application to Everyday Life and Business” (Mesorah Publications), p. 419.

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