Shariah Rules for Annulment of Rental Contracts and Other Agreements
If the landlord or the tenant passes away, the rental contract becomes annulled.
If a certain reason crops up whereby one is forced to annul the contract, it will be permissible to annul it. For example, you hired a vehicle in order to travel to a certain place. Thereafter, you changed your mind and decided not to embark on such a journey. In such a case it is permissible to annul the contract.
The custom of paying a deposit when hiring a vehicle and thereafter paying the balance when you embark on the journey, and forfeiting the deposit when you decide not to embark on the journey is not permissible. The person who takes the deposit has to return it in the event of the customer not embarking on the journey.
Note
These examples illustrate fundamental Islamic principles (Shari'ah). These core concepts, rooted in fairness and mutual obligation, can be thoughtfully extended and applied to various other permissible transactions.
