IJARAH

Definition
To give something on rent.
Technical meaning: two different connotations
1.To employ the services of a person on wages given to him as a consideration for his hired services. Employer – musta’jir, employee – ajir. Most common type of ijarah used in all service industry.
2.To transfer the usufruct of a particular property to another person in exchange of rent claimed from him. Lessor – mu’jir, lessee – musta’jir, rent- ujrah.

Conditions of Ijarah
1.The contracting parties which are the lessor or the owner of the asset, and a lessee or the party who benefits from the use of the asset
2.Offer(ijab) and acceptance(qabul)
3.Subject of the matter, the rent and the benefits (manfa’ah)

Lessor’s obligation
1.Ensuring the leased asset is available and utilizable
2.Guarantee in respect of defects
a.What is the position if there is a defect?
3.Maintenance of the leased asset. It could be asked for the lessee to maintain for the following conditions.
a.The operating maintenance that is required as a result of using the asset (e.g lubricants, petrol for cars and machines)
b.Periodic maintenance which is required for the asset to continue providing benefit
c.Maintenance that is specified in description and amount in the contract or according to practice irrespective of whether such maintenance is merely work or it involves the use of known materials or spare parts.

Lessee’s obligation
Required to utilize the leased asset according to the conditions of the contract. Or normal accepted practices. He should be a pay master. The asset is an amanah in the hand of the trustee (agreed by scholars).