Islamic Contract Law:

Mal

,

Manfa‘ah

and Rent in

Ijarah

Under the Hanbali school, mal is not limited to a physical object. A lawful and valuable benefit (manfa‘ah) can also be regarded as mal.

Example: Renting a House

Suppose Ahmad owns a house and rents it to Ali for RM1,000 per month.

• The house itself is mal belonging to Ahmad, the lessor.
• Ahmad still owns the physical house even after renting it out.
• The benefit of using and living in the house (manfa‘ah) is also recognised as mal.
• During the rental period, Ali, the lessee, receives the right to use that manfa‘ah.
• The RM1,000 paid by Ali is the rent (ujrah).
• The rent money is also mal, but it is the mal paid by the lessee to the lessor.

In Simple Form

Lessor / Landlord

• Owns the house → mal
• Gives the manfa‘ah → right to use the house
• Receives the rent (ujrah) → mal

Lessee / Tenant

• Does not own the house itself
• Receives the manfa‘ah → recognised as mal
• Pays the rent (ujrah) → mal

Simple Sentence to Remember

In an ijarah contract, the lessor keeps ownership of the physical property (mal), while the lessee receives the manfa‘ah, which is also recognised as mal under the Hanbali view, in exchange for paying rent (ujrah).