Shituf

Shituf is a concept in Jewish law that refers to the joint ownership of property or business. It specifically applies when two or more individuals pool their capital, labor, or both to engage in a commercial venture. The partners share in the profits and losses of the undertaking according to their agreed-upon stake.

This form of partnership is distinct from other types of business arrangements. For example, it differs from a landlord-tenant relationship or a simple loan, where one party provides a service or capital and receives a fixed return. In shituf, the return is contingent on the success of the venture itself.

The legal framework for shituf is derived from rabbinic interpretation of biblical and talmudic texts. It emphasizes the importance of clear agreements and mutual understanding between the partners to avoid disputes. While the underlying principles are ancient, the practical application of shituf continues to be relevant in modern business contexts within observant Jewish communities. It allows for the formation of businesses while adhering to halakhic (Jewish law) principles.