MEANING OF IJARAH DOCX

Title	MEANING OF IJARAH
Author	Asma Fatma
Pages	6
File Size	21.1 KB
File Type	DOCX
Total Downloads	50
Total Views	770

Summary

Description

MEANING OF IJARAH Ijarah comes from word ajr that meaning of the reward or wages for word done or services rendered. From the technical meaning in Fiqh, ijarah means a contract for hire of persons or services or "usufruct" of a property. From the Islamic banks view, al Ijarah usually refers to an Islamic leasing contract of land, property or equipment, which is leasing to a client for stream of rental payments. Ijarah is about the contract between a lessor and lessee in which the lessor being the owner of the property allows the lessee to enjoy the usufructs of the property at agreed terms on the rental and period of lease. Ijarah contract is permissible under the Shari'ah based on the following authorities: 1. Allah says in the Quran, "and if they suckle your (offspring), gives them their recompense" (surah al- Talaq: 6) 2. It was narrated by Abu Hurayrah that Prophet Muhammad (s.a.w.) said, "He who hires a worker must inform him of his wage". [Reported by Al-Bayhaqi] ELEMENTS OF IJARAH There are five essential elements of contract of utilizing the usufruct or ijarah as follows: 1. Lessor and lessee There are three necessary conditions for the lessor and lessee as follows: a) They must be capable of taking responsibilities, that is to say they are a sound mind and have reached the age puberty (bulugh) and age of majority (rushd). b) They must not be prohibited from dealing with their properties, specifically they are not declared bankrupts or prodigal. c) No coercion is exerted on either of them. 2. Property There are four necessary conditions for the property as follows: a) It must be owned by the lessor....