Question
Around 13 years ago we did website hosting for a client. We acted as a reseller by getting the hosting from a company and then reselling it to our client.
When reselling it, we agreed on a monthly rate of R100. There was no time period specified for the hosting. Was this Ijarah Faasidah (invalid rental agreement)? If yes, how do we correct the transaction now?
We tried to contact the client because he has not paid us for a number of months, but we could not make contact with him. What should we do?
Answer
We understand from your query that you hired the services of a web hosting company and in turn sublet the services to your client. If you are merely subletting the service without carrying out any additional work then you are not entitled to charge any more than what you are paying to the web hosting company. Yes, if there is any additional work provided to the client then you are entitled to charge more than what you are being charged by the web hosting company.
With regard to the monthly hiring fee, if you had quoted the client a fee of R100 per month for the service that you are offering without fixing the total number of months for which the service will be hired out, then the Fuqaha have stated that the transaction is valid in the first month but invalid in the subsequent months. However, if the client then continues utilizing the service for even a moment in the subsequent month/s, the hiring agreement in the subsequent month/s will become correct (due to indirect and tacit approval) and the client will be liable to pay the hiring fee. This is the view of the some of the latter jurists.
Based on the above, if the client continues using the service when the new month enters (and on expiry of the previous month) then the Ijaarah (rental agreement) will be renewed (for the new month) and you will be entitled to the stipulated fee.
Now that the client is not paying for the services, you are entitled to inform him that you are now terminating your services but he is liable to pay for the months for which he is in arrears as he continued utilizing the service in those months.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.
References
ومن استأجر داراً كل شهر بدرهم فالعقد صحيح في شهر واحد فاسد في بقية الشهور . إلا أن يسمي جملة شهور معلومة، فإن سكن ساعة من الشهر الثاني صح العقد فيه ولزمه ذلك الشهر ولم يكن للمؤجر أن يخرجه منها إلى أن ينقضي، وكذلك كل شهر يسكن في أوله
(المختصر القدوري ص ۴۲۷ )