Business and Dealings

Charging a penalty for late payment and calling it admin fees

Q: I am currently renting my business premises from a an Islamic trust. They have amended the current lease agreement to state that 2% interest will be added to late payment of even a months rent. When the Muslim tenants objected, they changed the word interest and now describe it as admin fees.

Is this allowed? This very trust contributes to the funding of the masjid and Islamic school.

Demanding payment from a client

Q: I did work for a Hindu. Payment was due months ago. He owes me R425. It is a tiny amount, but I spent a lot of time on the work, and the amount will cover certain business expenses.

He promised thrice to pay. I stated clearly the terms when I quoted him before he paid the deposit, which he agreed to. But now he says, months later, those terms are unfair, so he will not pay. I should email, and message him several times for months, but no response.

He finally answered the phone. I was so angry at his excuses and lies, that my hands started shaking and I started arguing loudly and interrupting him. I never get vulgar or insult, but I was rude and hostile. I never became like this ever before on a worldly issue in my entire life. Eventually he said he will pay month end. I said "Thank you, goodbye".

If he was a Muslim, I would have overlooked this for the sake of peace and community, hoping reward from Allah Ta'ala. But this treatment from a Hindu, I don't appreciate. Please advise:

(1) Was I sinful in talking rudely, angrily, and hostile with him? If yes, must I apologize to him for being rude? He has continued to lie and ignore me for months, and I finally got to speak to him on this occasion.

(2) What do you advise regarding the R425 he owes me? Should I pursue it or just drop the matter in view of peace? The next option I can consider is issuing him a legal letter of demand, following with Small Claims Court. But I do not want to go to court. However, I can threaten him with it. Insha Allah I will follow your advice.

Mandatory travel insurance on Hajj and Umrah packages

Q: Please can you advise on the verdict regarding travel insurance. We understand all forms of insurance are not permissible, however I did notice that on the Hajj and Umrah packages there is mandatory travel insurance. Please can you advise what is to be done in this situation?

On the same subject, is it permissible to hire a car? There is also an insurance clause in the fine print of the agreement that needs to be signed before hiring.

If there are alternatives to the above that Ulama and others use when going for hajj/umrah please also let me know what these are.

Selling a share in a property at a higher price

Q: I had 2 clients, client A, who wished to buy a property. The client had an agreement with the seller to purchase a property being sold for R900 000. Client A wanted to get bank finance for the shortfall on the purchase price. We advised against it. We spoke to client B, who had R100 000 to invest. We brought both the parties together. Client B agreed to buy 1/9 of the property. Within a month client B agreed to sell his share at R120 000, an agreed of repayment was made and met.

Is the transaction a valid shariah agreement.

Woman feeling that her colleague at work is jealous of her

Q: I have a friend at work who is friends with another colleague that is extremely jealous of me and is always putting nazr on me, I've read duas for protection especially when around that person but found it best to also stay away. I tried speaking to my friend and she feels as a Muslim she cannot abandon another Muslim even if they are not good company and she likes being around that person because of the things that person spoils my friend with.

Is it wrong Islamically for me to disassociate myself from my friend because of this?

Making an effort to repay the loan

Q: I have taken some money from a friend from Australia. While taking the money, I planned to work abroad so that I can earn big amounts and pay back the money. I want to ask that now I am not in a condition to return the money. Is that a sin for me? What should I do? The person hasn't asked me for the money, and knows that I am not in a financial condition to return the money.