Terms and Conditions of Al-Ijarah

Al-Ijarah (rent/lease/hire) contract has a number of terms and conditions in addition to the common terms and conditions that apply to all contracts. Al-Ijarah contract is more widely used nowadays than ever before, primarily due to the creation of large commercial enterprises since the dawn of the industrial revolution. As such, these terms and conditions should be common knowledge to all Muslims.

  1. The property rented or leased must be in a useable condition (i.e., the lessee should be able to use the property for its intended purpose). Similarly, in a hire contract, the employee must be able to perform the job required of him or her.
  2. Ijarah has to be for inconsumable goods.
  3. The lessee or the employee is not permitted to use the subject in a manner contrary to what is permitted by the contract. Specifically, the lessee or the employee is not allowed to inflict any harm on the subject of the contract.
  4. Ijarah contract cannot be made for a task that is a religious obligation. For example, it is prohibited to enter into an employment contract for leading the prayer of making the azaan. Ijarah is valid, however, for teaching the Qur’an or religious sciences, as well as secular subjects because these are not religious obligations.
  5.  If the two parties disagree on the value of the reimbursement or the rent/lease on the property, after the contract commences, the word of the lessor/employer is accepted under oath upto the time of disagreement. At that point the contract is then invalidated.
  6. The majority of the scholars say that the Ijarah contract does not end by the death of one of the two parties, as long as both parties can fulfill their end of the contract. The Hanafis, to the contrary, deem the contract invalidated with the death of one party.

Source: Abdelhaleem, 11-12.

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12 Comments

Filed under Contracts and Transactions

12 responses to “Terms and Conditions of Al-Ijarah

  1. Ajay Vijayan

    I am MBA student in ICFAI, Bangalore. I am doing a research in loan origination process of Islamic Banks and its differences from conventional specifically in the APAC region. Please let me know of
    1. Data which may be related to loan processing issues for islamic banks for different methods
    2. Any form of standardization that may be brought in for Islamic banks

    Thanks,

  2. MAIMUNATUL HUDA ABDUL

    I am UNDER GRADUATE law student in B.U.K, Nigeria. I am doing a research in islamic law of hire purchase. Please let me know of
    1. concept,terms and conditions of hire purchase under islamic law, pls.
    Thanks & God bless

  3. neesa

    i am student from internatinal islamic university in malaysia, can u give me the types of al ijarah and the explanation…thank you..

  4. aizat

    I am student from UiTM Malaysia, can u give me the types of al ijarah and the explanation…i need it as soon as posible..sharing is caring, thank you..

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  8. Abdulaziz

    I’m law student from BUK pls what hire purchase means on the perspective of islamic law

  9. This article is really helpful for getting a general knowledge about Islamic Economics. However, you can read this one for more information about;

    http://islam-economy.org/islamic-economics/income-sharing/

  10. You people has done a very good job, but I need the pillars, terms of AL-IJARAH, and how can the al-ijarah be taken place in between the two party that they would not go contrary to the law of shari’ah

  11. mariam

    salam every one i am a credit management student at kampala university uganda i would like to be equiped with the tips of how the islamic banking system can be applied in third world countries like uganda, i gladly welcome your contributions because this system is really interesting

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