The Majlis Archive

Finance - Banking - Business The Majlis Vol 23 No 09, p.3

A tenant closed his business which was a failure and showing only loss.

Question

A tenant closed his business which was a failure and showing only loss. He therefore vacated the premises before expiry of the lease. Is it permissible for the landlord to charge him a fee called "damages fee" for premature cancellation of the lease?

Answer

The 'damages' fee is not permissible. Since the tenant had a valid reason for premature cancellation, no fee of any kind may be charged.

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The Majlis Vol 23 No 09
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