Leasing is in etymology

Leasing is in etymology, al ijaraah derived from al ajru which means al – iwadh/substitution this is why ats-tsawabu in rewards context also called al – ajru . while in terminology, al-ijaraah in simple way means akad or benefit transaction or services with specific payment. If the transaction’ object is benefit or services from an item or goods called ijaraah al’ain, for instance leasing house for living. When transaction’ object is benefit or services from human services or power called ijaraah ad dzimah for instance taxi driving. Although the both object are different in fiqh context called al; ijaraah.

Al-ijaraah is muamalah which has been legalize or disyariatkaan by islam. According to jumhur ulama, law of al-ijaraah is mubah or allowed as long as based on syara’ which has written on ayat al-quran hadist and ijma ulama.

According to hanafiah,there is only one pillar of al-ijaraah , it is ijab and qobul between both party who make transaction. But, in jumhu ulama’s thought, there are four pillars of ijaraah, these are :

1. Two peoples who makes an agreement/berakad
2. Sighat ( ijab and qobul )
3. Lease or wage
4. Benefit

Requirment of al- ijaraah are:

1. People who makes an agreement/berakad should be ingenious/baligh
2. Both party who makes an agreement should be willing in doing al-ijaraah agreement/berakad
3. Al-ijaraah’s object can be given and use in directly and there is no defect
4. Al-ijaraah’s object is something allowed by syara’

The lease item is not the responsibility for  people who leasing.

1. Al-ijaraah object should be something real and can be lease.for example house, vehicle, etc
2. Payment or wage in al-ijaraah should be clear specific and something have value

According to sayyid sabiq, leasing company/ people might lease the item to other lessee, as long as the uses of item depend on the first party agreement.

Al-ijaraah probably breakdown and ends, in case:

1. There is defect on lease item while the lessee used it
2. The lease item broken for example the house collapse, the building burnt etc
3. The benefit has been fulfilled based on the agreement/akad according to period
4. In hanafi thought, one party can canceled al-ijaraah if there is unpredicted thing happened for instance building burnt, the sale item stolen, the company has run out off capital.

 The purpose of leasing  is to take the benefit from  the lease item with the specific purpose