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Heter Iska

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Heter Iska-Bris Pinchas
Contract to permit a heter iska (joint venture)
Note: All my financial agreements, whether private or commercial,
are bound by the terms of the heter iska contract, as follows:
I, ____________, the undersigned [own the store, company, or corporation________________]
agree and declare the following:
If this contract is to be used between two parties, sign here:
We, the undersigned, [1st party]:_______________________ and [2nd party]_______________________, each and
every one involved.
1. All financial and money matters in which I will be involved, or in which an agent will be involved on
my behalf, whether acting as an individual or whether acting on behalf of a company, store, corporation
or other such entity (including all branches and all representatives in Israel and in any other country),
whether dealing with individuals or with companies, corporations, or their agents, regarding whatever I
give to them or they will owe me, or regarding whatever I receive from them or I will owe them, regarding
all types of credit, deposit, debts, surety, liens, mortgages, savings, dividends, bonds, and shares,
including proprietorship, brokerage, commissions, trusts, and agents acting on my behalf, including
payments, taxes, fees, property tax, sales, and purchases, whether by credit, payment up-front, receipt
of any type of service, any other form of payment, any work received, and the like, and regarding the
receipt of any products or anything of monetary value, whether received as a loan, sale, or any other
form of transaction, regarding all the above mentioned, anything that could possibly involve any type
of agreement that is prohibited in any way according to Jewish law, even if the words “loan,” “interest,”
“payment for,” “remaining debt,” or any similar terminology are written in any document, receipt, or the
like, all forms of transactions specified above will be legally considered instead as bound to the terms of
this heter iska agreement as will be specified below, and any terminology written in any other document
has no power to nullify the conditions specified in this heter iska document which testifies that the heter
iska laws applies to all transactions.
2. All the above mentioned will be in the possession of the recipient or the debtor (hereafter referred to
as the “recipient”) under the terms of the heter iska as instituted according to Jewish law. The investment
shall be owned jointly by the investor and recipient. Regarding profits realized, the recipient and the
investor will each take fifty percent. Regarding losses resulting from business, the recipient will suffer
45 percent, and the investor will suffer 55 percent. However, the recipient is fully responsible as a hired
guard (shomer sachar), as specified by Jewish law, if the funds are otherwise lost or stolen.
3. It is further agreed upon that if any transactions are made for which the above conditions are insufficient
to avoid payments of issurei ribbis or, if due to the nature of the recipient’s business it is known in advance
that the investor will not receive a portion of the profits as mentioned below, then such transactions will
legally be considered entirely as a pikadon (deposit or investment) owned entirely by the investor and for
which the recipient acts only as an agent, and the recipient will be responsible for loss or theft as dictated
by Jewish law for a hired guard (shomer sachar). The investor will receive 75 percent of net profits,
and the recipient will receive 25 percent of net profits. If these terms are still insufficient to avoid ribbis
payments (as mentioned above), then the recipient will be responsible only for loss due to negligence,
and the investor will receive 75 percent of net profits, and the recipient will receive 25 percent of net
profits. And if these terms are yet insufficient to avoid ribbis payments (as mentioned above), then the
recipient will receive one dollar as payment for services.
4. Whether the transaction is considered an iska (joint venture) or a pikadon (deposit or investment), the
recipient agrees to act in all business ventures in the best and most advantageous manner for generating
profits, whether dealing with merchandise or real estate, whether regarding business ventures that are
already in progress, or regarding future business ventures. In exchange for the money or debt, the
investor will acquire a portion in the existing and choice merchandise and business transactions of
the recipient, as determined by the appraisal of experts chosen by the investor. Likewise, in every
acquisition made by the recipient from now on, he will acquire a portion on behalf of the investor and for
the investor’s best interest, all in the best possible manner.
5. Everything mentioned above applies even if the investment was intended only for a specific purpose.
Despite any written agreements, it is agreed that whoever is in possession of the investment shall act in
all of his business dealings for the best interest of the joint venture, but rights to the property
acquired shall be registered in the name of the recipient. 6. It is upon the recipient to prove that he dealt with the money invested with him faithfully,
according to the enactment of the Mahara”m, and if he should claim that the principal investment
has been lost, he will not be trusted except by suitable and trustworthy witnesses in accordance with
Jewish law, and he will not be believed that he does not own any other property that could be collected
as collateral for the investment, and also his claim to the amount of profits or the lack of profits will not
be believed except by solemn oath made in accordance with Jewish law in a rabbinical court of law
which is to be agreed upon with the investor, and the recipient must also exhibit a detailed explanation,
ledger, and whatever documentation is in his possession, all records, and authorized statements, and
all testimony and proofs whatsoever. No circumstantial evidence will be accepted to acquit the recipient
from the above mentioned oath. The only evidence that will be accepted is suitable and trustworthy
witnesses in accordance with Jewish law. Regarding business dealings in which the recipient was not
personally involved, an oath by the employee made with the above mentioned conditions will be equally
7. Furthermore, it is agreed upon that if the recipient gives the investor a set amount, as agreed
between them, in exchange for his share of the profits, including changes in the consumer’s price index,
money exchange rates, and the like, gifts, grants, deliveries of merchandise paid in advance, or [for
sale on credit] payments expected for the sale of merchandise, and the like, then he will be exempt from
producing any proof of his business dealings, and the remainder of the profits will belong exclusively to
the recipient.
8. Likewise, it is agreed upon that all payments or gifts that are given before the start of this heter iska
by the recipient to the investor will only be considered as repayment for the investment, and in the
event it becomes evident that the recipient is not obligated in this payment according to the terms of this
contract, the amount given will be deducted from the principle investment.
9. It is further agreed upon that if the payment is withheld beyond the time agreed upon by both parties,
then the heter iska will be extended according to the terms agreed upon above until full payment is
received. 10. All guarantees which might be subject to ribbis payments are bound to the terms of
agreement written within this contract.
11. It is agreed upon that under any situation where it is stipulated that payments are to be made
periodically, then the heter iska is terminated at the end of each payment period. If the recipient remains
in possession of the money, then a new heter iska agreement will commence in accordance with the
conditions of this document.
12. If more than one person is signed as the recipient, then the term “recipient” in this document
should be understood as “recipients.” Likewise, if more than one person is signed as the investor,
then the term “investor” in this document should be understood as “investors.” And everyone involved,
individually and collectively, are obligated to uphold this contract, and in the most advantageous manner
for generating profits. All transactions between the undersigned which contain the possibility of any sort
of issurei ribbis payments are bound by the terms of agreement within this contract.
13. All the terms of agreement stated above are final and obligate myself and any businesses that I own.
It is explicitly agreed that if for whatever reason the recipient or the investor is unfamiliar with the heter
iska, or even completely ignorant of it, they will act in accordance with the heter iska as specified in this
contract, and all the obligations and benefits which apply to the investor of an iska or to the recipient of
an iska apply to them, as specified in this contract since, according to this contract, I and any company
that I own will not deal in any financial matters which could possibly contain payments of ribbis, and
whoever does business with me, and with any of the companies that I own, acts in accordance with this
This heter iska contract is an inseparable part of all contracts, agreements, and obligations of any
company or business that is under my management or that I own, and this contract is legally binding
in every manner. In order to reinforce everything stated above, we are setting it forth in writing as a
reminder, and openly publicizing these terms of agreement. All the above has been made in conjunction
with an acquisition of real estate, in the presence of a prominent Jewish court of law, in the best possible
manner according to Jewish law, as instituted by our sages, and all conditions within this document shall
be firm and abiding.
To bear witness, we have signed on day___________________
Signature:_____________________ Signature:_____________________.

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Heter Iska-Abridged Halachos



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