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Is it permissible for the tenant to terminate the lease agreement for a shop or to demand a reduction in the agreed-upon rent after his business has deteriorated and debts have accumulated?

1 min readAlso available in العربية

The default in a lease contract, according to the majority of scholars, is its binding nature. Neither party to the contract has the right to unilaterally terminate it except in the presence of a defect or the loss of the place where the benefit can be utilized, based on the Almighty's saying: "O you who have believed, fulfill [all] contracts."

As for Abu Hanifa and his companions, they permit the lessee to terminate the lease due to an unforeseen excuse affecting the tenant. The Fiqh Encyclopedia and "Radd al-Muhtar" have mentioned examples of such excuses, such as the tenant's bankruptcy or market stagnation, although there is disagreement regarding whether stagnation is considered an absolute excuse.

Therefore, according to the majority of scholars, the tenant is not permitted to terminate the contract due to business losses and stagnation, nor is he allowed to insist on paying less than the agreed-upon rent unless the lessor agrees.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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