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Fatwa CenterIs it permissible to cancel partnership contract at any time?
Question
I agreed with my partner to rent a piece of land. Consequently, I went ahead and concluded all the license procedures. Is it permissible for me to break up the partnership with my partner? Is it obligatory upon me to make him my partner in this regard?
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, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
A partnership contract is one of the permissible contracts where each partner has the right to annul it whenever he wants. Ar-Ramli, a Shaafi‘i scholar 
said, “A partnership contract is valid from both partners as he said. Each partner has the right to cancel it whenever he likes.”
Hence, it is permissible to cancel the partnership contract. However, whatever binding action happens before cancelling the contract is for both partners and they should enjoy its benefits according to their shares. One of these things is the rented land; its benefit belongs to both of you, whether the partnership is continued or cancelled.
Allaah Knows best.
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