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.