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Lesson leasing

In this lesson, we will learn about the concept of leasing and some of its rulings in Islamic legislation.

  • To learn about the meaning of leasing, its ruling, and the wisdom behind its legislation.
  • Learn about the main conditions and terms of the lease contract.
  • Awareness of the types of fare and those that are hired.
  • Awareness of cases in which lease contract ends.

The Concept of Leasing

It is a contract for a job, or for a known permissible benefit from a known asset or described in the trust, for a known period of time, for a clearly defined compensation.

The Ruling of leasing in the Islamic legislation

Leasing is permissible and is indicated by the Quran, the Sunnah, and consensus. However, it is a necessary contract from both parties if it is completed, and every word is implemented based on whatever it indicates, such as your wages, debts, and what is customary.

Evidence for the Permissibility to Lease

Allah says: (One of them said, “Father, hire him. Indeed, the best of whom you hire is the strong and trustworthy".) [Al-Qasas:26]

Aisha (may Allah be pleased with her) said: "Allah's Messenger ﷺ and Abu Bakr hired a man from the tribe of Bani-Ad-Dil as an expert guide who was a pagan (follower of the religion of the pagans of Quraish). The Prophet ﷺ and Abu Bakr gave him their two riding camels and took a promise from him to bring their riding camels in the morning of the third day to the Cave of Thaur." (Al-Bukhari, 2264)

The Wisdom of the Legality of Leasing

Leasing brings many benefits to people in their livelihood. They need masters of crafts to work, houses to live in, shops to buy and sell, animals, cars, machinery, etc., to carry, ride and benefit from, and many people cannot buy these things, so the legalization of leasing expands and facilitates for people, and helping them to fulfill their needs with a small amount of money with the benefit of both parties. All praise be to Allah.

Types of Lease

١
To be a known commodity, such as a residence, a shop, etc.
٢
To be defined amount of labor; such as hiring a person to build a house or cultivate the land and the like.

Types of Wages

١
Private Hire.
٢
Joint Hire.

Private Hire

Someone who another person hires for a specific period to work for him, so it is not permissible for him to work for someone other than the one who has hired him. If he works for someone else during this period, his wages will be reduced in proportion to his work. However, he is entitled to the salary if he presents himself and performs the work. He is entitled to the total wage if the hirer cancels the lease before the completion of the period unless there is an excuse such as illness or disability, in which case he is entitled to the wage for the period in which he worked only.

Joint Hire

The one whose benefit is shared by more than one person, like the blacksmith, the plumber, the painter, and the tailor. On the other hand, if he is self-employed and accepts the work of those who ask him for it, then the one who hired him cannot prevent him from working for others, and he is not entitled to wages except by working.

Fundamental rules for a lease contract

١
Contractors.
٢
The Correct Wording
٣
Nature of the labor
٤
The Fee

Those Under Contract

Refers to the parties of the contract (those involved in the hiring) who have the right to offer and accept.

The wording of the Contract

I.e. The offer and acceptance, and any act that proves the legal or customary format to be in effect.

Benefit Received in Any Given Contract

What is intended is the leasing/hiring contract; whether it is benefit from a human being, an animal, or any given commodity, then upon that the contract is based.

The Fee

The compensation that is given in return for the benefit received from either an object or a person, corresponding to the amount in the contract.

Terms for the Validity of the Lease

١
Each contracting party must only engage in permissible things, as it is required that the contracting party be upright, not foolish, and discerning. For example, the hiring contract is invalid for a young person who cannot distinguish (right from wrong) and is insane. Furthermore, the contracting party must be able to fulfill the contract, i.e., the power to enforce and commit himself.
٢
Being aware of what the benefit is, such as being housed somewhere, or serving a person.
٣
Knowing the fee.
٤
The benefit must be for something permissible and not forbidden. Hiring for singing, turning a house into a church, or a shop into a place for selling wine are all not valid.
٥
Knowing the leased thing by either seeing it or its description, and that it be contracted on the benefit derived from it and not its parts, and it must be able to deliver the benefit, and that it only includes permissible benefit, and that it is owned by the one leasing it out or that he be authorized to lease it out.
٦
The lease must be consented to by both parties.
٧
Offer and acceptance must occur between the two parties.
٨
Knowing the duration of the lease, such as a month, a year, and the like.
٩
The safety of the leased item from having a defect that impairs its use.

The Time the Fee is Payable

The rent is due per the contract and must be delivered after the lease term expires.

And if both parties agree to expedite, postpone, or pay by installments, it is permissible, and the employee deserves his wages if he completes his work well.

If the lease is on a leased thing, the payment is due after receiving the benefit. Abu Hurayrah (may Allah be pleased with him) reported Allah's Messenger as saying that Allah has said, «There are three whose adversary I shall be on the day of resurrection: A man who gave a promise in my name then acted faithlessly; a man who sold a free man and enjoyed the price he received for him; and a man who hired a servant and, after receiving full service from him, did not give him his wages.» (Al-Bukhari, 2227)

Cases of Termination of a Lease

١
Perishing of the designated leased thing such as a house, a car, and the like.
٢
The expiration of the lease period.
٣
Impeachment is when one of the parties asks the other to resign him, and he dismisses him.
٤
The occurrence of a defect in the leased item is due to someone other than the one hiring it, such as destroying the house, a machine, and so on.

The lease is not annulled by the death of one of the parties, nor by the sale of the leased thing, and whoever was hired for a private business and then dies, the lease is annulled. When the lease term expires, the hiring person hands over the leased thing to the owner if it is movable.

Differences between leasing and selling include:

١
The contract is not fulfilled in hiring - which is a benefit - all at once, but in sales, the thing sold is received at once.
٢
Not everything permitted to be hired may be sold, as it is permissible to hire a free person because it is for labor, while it is not permissible to sell because a free person is not someone else's wealth.
٣
Although leasing is similar to selling, it is distinguished by the fact that an item is being hired for a benefit, whereas selling is something that is brought outright.
٤
Hiring accepts completion and addition for the future; as for sales, it is only something completed.

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