Their Islamic identity to organise their collective life in accordance

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A said to B. “I lease you one of my two shops.” B agreed. The lease is void, unless the leased shop is clearly determined and
identified.

12. 
    The rental must be determined at the time of contract for the whole period of lease.
    

It is permissible that different amounts of rent are fixed for different phases during the lease period, provided that the amount of rent for each phase is specifically agreed upon at the time of effecting a lease. If the rent for a subsequent phase of the lease period has not been determined or has been left at the option of the lessor, the lease is not valid.


Example (1): A leases his house to B for a total period of 5 years. The rent for the first year is fixed as Rs. 2000/- per month and it is agreed that the rent of every subsequent year shall be 10% more than the previous one. The lease is valid.
Example (2): In the above example, A puts a condition in the agreement that the rent of Rs. 2000/- per month is fixed for the




¹ See Ibn ‘Abidin, Radd al-Muhtar, 6:47–48.
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first year only. The rent for the subsequent years shall be fixed each year at the option of the lessor. The lease is void, because the rent is uncertain.

The determination of rental on the basis of the aggregate cost incurred in the purchase of the asset by the lessor, as normally done in financial leases, is not against the rules of Shari‘ah, if both parties agree to it, provided that all other conditions of a valid lease prescribed by the Shari‘ah are fully adhered to.

14. 
    The lessor cannot increase the rent unilaterally, and any agreement to to this effect is void.
    
15. 
    The rent or any part thereof may be payable in advance before the delivery of the asset to the lessee, but the amount so collected by the lessor shall remain with him as ‘on account’ payment and shall be adjusted towards the rent after its being due.
    
16.