144 chapter four
commenda; both Muslims and non-Muslims may engage in a com-
menda contract providing that the rules of the Sharì"ah be observed.
The Cairo Geniza papers show that the following points had to
be taken into account when concluding a partnership or a com-
menda contract (Goitein, 1967):
- The number and status of the contractors
- The object of the contract and the aims pursued in it
- The nature and extent of the contribution of the partners (cap-
ital, goods, premises and work) and the specific rights and priv-
ileges granted to each partner - The partners’ share in profit and loss and their responsibility for
the capital invested - Conditions governing expenditure for the partnership and living
expenses of the partners - Conflict of interest; whether the partners could enter into other
partnerships and commendas of similar objects - The duration of the partnership, except in the case of specific
commercial ventures - The date of rendering accounts when interim accounts were
required - Specific conditions of any kind
- Eventually, in the absence of a certain condition, the generally
accepted rules of the custom of the trade and current practice
would be applied
With the wide geographical area of trade, several financial instru-
ments were either introduced or modified from their Persian origin.
The “ruq"a”, which means in Arabic a piece of paper or writing
material, referred to an order of payment, and the “sakk”, which
means an issued deed or document, was an order of payment drawn
on the banker with whom the drawer had an account. The “suftaja”
was another instrument, which originated from Persia, the use of
which had been conditioned by Muslim jurists. Suftaja could be
defined, according to the jurists, as the process of transferring a loan
of money to be paid in a different place, or a different country, to
avoid the risk of transport. Because of the risk involved in trans-
porting the money, which was born entirely by the debtor without
any financial reward, such as fees or wages, Muslim jurists viewed