Reuven gave Shimon 120 dinarim in an iska, and Shimon lost 105 dinarim. Must Shimon pay only 35 dinarim (one-third of the 105)?
Halacha 1: The investor never receives less than half. If total loss plus one-third payment would leave the investor with less than half, the administrator must pay the full loan half. In this case, Reuven must receive 60, so Shimon pays 60.
Question 2
An administrator lost money early in the iska, then later recovered all losses and made additional profit. How is the final accounting done?
Halacha 2: Accounting is done only at the end. The administrator cannot ask to first calculate the early loss against the investor and then separately calculate the recovery as profit. Only the final net result is evaluated.
Question 3
An investor gave an administrator two separate investments, then wrote one combined iska contract for the total. The administrator profited on the first but lost on the second. How is this calculated?
Halacha 3: When one contract covers multiple investments, they are calculated together as a single investment. The investor 'caused himself a loss' by combining them, because it eliminates the administrator's ability to show separate profits.
Question 4
An administrator gives a gift to a friend using iska merchandise. The investor proves the gift came from the iska. Can the investor recover it?
Halacha 5: Upon bringing clear proof, the investor can recover iska property from anyone who received it — even after the recipient changed, sold, gave it away, or destroyed it. The administrator is personally liable to compensate.
Question 5
A craftsman is placed in charge of a colleague's store for half profit. During slow periods, he works his craft in the store. Is this permitted?
Halacha 7: A craftsman running a partner's store cannot practice his craft during store hours — his attention is divided and not fully on the store. An exception applies if his partner is present in the courtyard.