Fatwa ID: 08524
Answered by Alimah Saleha Bukhari Islam
Question:
If a person sign a contract and they just terminate before the Expiry? From a shariah aspect can you demand the money for the balance of the term?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
In Islam, contracts are considered sacred and binding, and all parties are expected to fulfil their obligations unless mutually agreed upon otherwise. The principles that govern contracts in Islam are based on mutual consent, transparency, and justice.
The following verse highlights the importance of honouring and fulfilling contractual commitments. If a contract is terminated prematurely without a valid Shariah reason, it is considered a breach of contract. The Quran states:
“O you who have believed, fulfil [all] contracts” [Quran 5:1] [1] [2]
The concept of faith in Allah is likened to trade because of the great rewards it guarantees. Followers of Imam Abu Hanifa and Malik cite this verse to argue against the option of recession at the session (khiyar al-majlis) of agreeing a sale, which is the right to cancel a transaction shortly after it’s agreed upon if still within the session or meeting. They reason that once a transaction is completed with mutual consent, it should be final as Allah swt has permitted such transactions. They further support their point with the Quranic verse that instructs believers to fulfil all commitments. Introducing an option to withdraw contradicts this instruction, as it implies not fulfilling a commitment once made, going against the verse’s requirement to honour agreements. [3]
However, a contract can be terminated for various valid reasons: [4]
- Justifiable reasons such as inability to perform the contractual duties due to unforeseen circumstances.
- Both parties mutually agree to end the contract early.
- The terms of the contract itself allow for early termination under specific conditions.
However, if one party unilaterally terminates the contract without a valid reason or without the conditions being met as stipulated in the contract, they may be liable to compensate the other party. The compensation typically would cover losses or damages directly resulting from the breach. In a service contract, this might include payments for the remainder of the term if the early termination causes financial loss to the other party.
In conclusion, from a Shariah perspective, if a contract is prematurely terminated without a just cause, the party responsible for the breach may be required to compensate the other party for the balance of the term. However, compensation should be calculated based on actual losses and be fair to all parties involved.
If there is a dispute regarding the termination of a contract or the compensation due, the parties should seek to resolve it through mediation or arbitration, ideally through Islamic arbitration if both parties are Muslims. This process should be guided by the principles of fairness, transparency, and justice. Consulting with an Islamic scholar, Mufti or a lawyer specialising in Islamic finance can provide guidance tailored to the specifics of the contract and the situation.
References:
[1] يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ أَوْفُوا۟ بِٱلْعُقُودِ ۚ
[2] كذلك سمى الإيمان بالله تجارة لما يستحقون به من جزيل الثواب.
واستدل أصحاب أبي حنيفة ومالك بهذه الآية على نفي خيار المجلس، فإن الله تعالى قد أباح كل ما اشتري بعد وقوع التجارة عن تراض، وما يقع من ذلك بإيجاب الخيار، خارج عن ظاهر الآية مخصص لها بغير دلالة، ونظير ذلك استدلالهم بقوله تعالى:
(يا أَيُّهَا الَّذِينَ آمَنُوا أَوْفُوا بِالْعُقُودِ «٢» ) .
فألزم كل عاقد الوفاء بما عقد على نفسه، وذلك عقد قد عقده كل واحد منهما على نفسه، فألزمه الوفاء به، وفي إثبات الخيار نفي للزوم الوفاء به، وذلك خلاف مقتضى الآية.
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[3] (الْمَادَّةُ ١١٤) الْبَيْعُ اللَّازِمُ هُوَ الْبَيْعُ النَّافِذُ الْعَارِي عَنْ الْخِيَارَاتِ وَبِعِبَارَةٍ
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[4] أُخْرَى فَالْبَيْعُ اللَّازِمُ هُوَ الْبَيْعُ الْخَالِي مِنْ الْخِيَارَاتِ الْمَذْكُورَةِ فِي الْفُصُولِ السَّبْعَةِ مِنْ الْبَابِ السَّادِسِ لِكِتَابِ الْبُيُوعِ.
وَحُكْمُ الْبَيْعِ اللَّازِم كَمَا جَاءَ فِي الْمَادَّةِ (٣٧٥) هُوَ الْبَيْعُ الَّذِي لَا يَحِقُّ لِأَحَدِ الْمُتَعَاقِدَيْنِ الرُّجُوعُ عَنْهُ بِدُونِ رِضَاءِ الْآخَرِ.
وَقَدْ عَرَّفَ الْأُصُولِيُّونَ اللُّزُومَ بِقَوْلِهِمْ (هُوَ أَنْ يَكُونَ الْفِعْلُ بِحَيْثُ لَا يَسْتَطِيعُ أَحَدُ الْمُتَعَاقِدَيْنِ رَفْعُهُ) وَفِي الْوَاقِعِ لَا يَحِقُّ لِأَحَدِ الْمُتَعَاقِدَيْنِ فِي بَيْعٍ أَوْ إجَارَةٍ أَوْ قِسْمَةٍ لَيْسَ فِيهَا خِيَارُ فَسْخِ شَيْءٍ مِنْ هَذِهِ الْعُقُودِ.
وَالْبَيْعُ اللَّازِمُ هُوَ مُقَابِلٌ لِلْبَيْعِ غَيْرِ اللَّازِمِ وَتُقْسَمُ الْعُقُودُ بِاعْتِبَارِهِ لَازِمَةٌ أَوْ غَيْرُ لَازِمَةٍ إلَى ثَلَاثَةِ أَقْسَامٍ:
١ – الْعُقُودُ اللَّازِمَةُ بِحَقِّ الطَّرَفَيْنِ وَهِيَ الْعُقُودُ الْآتِيَةُ:
(١) الْبَيْعُ (٢) السَّلَمُ (٣) الْإِجَارَةُ ” وَإِنْ جَازَ فَسْخُهَا بِبَعْضِ الْأَعْذَارِ ” (٤) الصُّلْحُ (٥) الْحَوَالَةُ (٦) الْمُسَاقَاةُ (٧) الْوَصِيَّةُ الَّتِي تُقْبَلُ بَعْدَ وَفَاةِ الْمُوصِي (٨) النِّكَاحُ (٩) الصَّدَاقُ (أَيْ الْمَهْرُ) (١٠) الصَّدَقَةُ الْمَقْبُوضَةُ (١١) الْهِبَةُ الْمَقْبُوضَةُ الْخَالِيَةُ مِنْ الْمَوَانِعِ السَّبْعَةِ.
٢ – عَقْدُ الرَّهْنِ وَهُوَ لَازِمٌ بِحَقِّ أَحَدِ الْمُتَعَاقِدَيْنِ دُونَ الْآخَرِ فَالْمُرْتَهِنُ لَهُ فَسْخُ عَقْدِ الرَّهْنِ وَلَوْ لَمْ يَرْضَ الرَّاهِنُ وَلَيْسَ لِلرَّاهِنِ فَسْخُ عَقْدِ الرَّهْنِ بَعْدَ التَّسْلِيمِ إلَّا إذَا اشْتَرَطَ فِي الْعَقْدِ الْخِيَارَ.
٣ – الْعُقُودُ غَيْرُ اللَّازِمَةِ لِأَحَدِ الْفَرِيقَيْنِ وَاَلَّتِي يَحِقُّ لِكُلٍّ مِنْهُمَا فَسْخُهُمَا بِدُونِ رِضَاءِ الطَّرَفِ الثَّانِي وَهِيَ:
(١) الشَّرِكَةُ، (٢) الْوَكَالَةُ، (٣) الْعَارِيَّةُ الَّتِي تُعْطَى لِغَيْرِ الرَّهْنِ (٤) الْمُضَارَبَةُ، (٥) الْوَدِيعَةُ، (٦) الْقَضَاءُ، (٧) الْوِصَايَةُ قَبْلَ قَبُولِ الْوَصِيِّ (٨) الْوَصِيَّةُ قَبْلَ مَوْتِ الْوَصِيِّ.
[ (الْمَادَّةُ ١١٥) الْبَيْعُ غَيْرُ اللَّازِمِ]
(الْمَادَّةُ ١١٥) (الْبَيْعُ غَيْرُ اللَّازِمِ هُوَ الْبَيْعُ النَّافِذُ الَّذِي فِيهِ أَحَدُ الْخِيَارَاتِ) فَالْبَيْعُ الَّذِي يَكُونُ فِيهِ أَحَدُ الْخِيَارَاتِ يَحِقُّ لِصَاحِبِ الْخِيَارِ فَسْخُهُ (رَاجِعْ الْمَادَّةَ (٣٧٦)) .
[ (الْمَادَّةُ ١١٦) الْخِيَارُ هُوَ كَوْنُ أَحَدِ الْعَاقِدَيْنِ مُخَيَّرًا]
(الْمَادَّةُ ١١٦) (الْخِيَارُ كَوْنُ أَحَدِ الْعَاقِدَيْنِ مُخَيَّرًا عَلَى مَا سَيَجِيءُ فِي بَابِهِ) .
الْخِيَارُ هُوَ أَنْ يَكُونَ الْإِنْسَانُ مُخَيَّرًا بَيْنَ تَنْفِيذِ الْعَقْدِ وَبَيْنَ فَسْخِهِ وَهَذَا التَّعْرِيفُ يَشْمَلُ جَمِيعَ أَنْوَاعِ الْخِيَارَاتِ.
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Only Allah (عز و جل) knows best.
Written by Alimah Saleha Bukhari Islam
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham