Iska A: When Merchandise is for Business Use
The following Heter Iska is suitable for use when a customer buys merchandise on credit and the seller charges him for the credit. Without a Heter Iska, this is prohibited.
When the customer uses the merchandise to make a profit, he may allow the seller to share in those profits by making him an investing partner in his business. The following Heter Iska does this, but uses the regular Heter Iska concept to establish the seller's share of the profit at a specific sum of money. The seller may set this at the amount he would have charged for credit if this were permitted.
1. Hebrew versions of a Heter Iska suitable for use in this situation appear in Tam Ribbis p. 307 and Mishnas Ribbis p. 256.
2. The purchaser should pay one dollar to the trader.
3. This part of the contract is optional.
4. The supplier gives a handkerchief (or another utensil or item of clothing) to the customer. In exchange, the customer obligates himself to the terms of the Heter Iska. This is not required when the Heter Iska is signed before the delivery of the merchandise.
5. This is required only if there are legal documents which refer to this as a debt.
6. This part of the contract is optional, depending on whether the parties prefer to have witnesses attest to their agreement.
Reprinted with permission of ArtScroll/Mesorah Publications, Ltd. from "The Laws of Ribbis: The Laws of Interest and their Application to Everyday Life and Business" by Rabbi Yisroel Reisman
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