PEH161

PEH161

Three brothers entered into the following partnership agreement for three years. A contributed 800 fl., B 1,500, and C 2,000. Initially, the surplus portions of B's and C's contributions beyond 800 fl. were to be compensated at an annual rate of 10%. Then the profits were to be distributed equally. Additionally, to offset A's smaller contribution, he assumed liability for one-third of the excess contributions beyond his own. Unfortunately, B passed away before the start of the first business year, but his heirs remained bound by the contract without actively participating. After the three years elapsed, concerns arose regarding whether B's heirs could receive the agreed-upon interest, considering the prohibition against usury (Zinsverbot) in the Torah. Chija Cohen de Lara ruled that the heirs were not actually partners in the business. Furthermore, they were not obligated to bear any losses. Nevertheless, he considered it morally desirable for the uncles to provide them with a fair benefit.

1

161

1740-11-19

1741-04-17

Cohen

Cohen de Lara, Chija

AthiasD

Athias, David Israel