Is it permissible to demand financial compensation in exchange for canceling a commercial shop lease contract before its expiration?
If a lease contract is concluded, it is binding on both parties, and neither party may unilaterally terminate it except with the consent of the other. Therefore, the tenant has the right to demand a financial sum in exchange for waiving the remaining period of the contract. Sheikh Ibn Uthaymeen has clarified that this is permissible if the waiver is for a right established by virtue of the contract, citing the verse: (O YOU WHO HAVE BELIEVED, FULFILL [ALL] CONTRACTS). However, if the lease period has ended and the tenant's continued presence is by virtue of state law, he is not permitted to demand compensation; rather, he must hand over the property to its owner, because his continued presence at that time would be an unlawful injustice.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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