Q&A: Increasing the Price of a Service in an Ongoing Contract?

Question: Is it permissible to increase the price for a service (with notice) in an ongoing contract? For example to increase the hourly rate when providing tutoring services for a child in Maths. Or alternatively in an ‘assumed’ fixed contract? ‘Assumed’ as in the term has not been stipulated by either party but is assumed to be of a particular length. So for example providing tutoring services to a child who is studying for GCSE’s, although it has not been stated that it is until the completion of these exams, it is assumed – but could potentially be longer if the child fails or continues to take the same subject at a higher level.

Answer: Bismillah. One of the conditions of a valid hire contract is that the term of hire is specified along with the rate of remuneration. After a term and rate has been specified, it would not be permissible to unilaterally make a change because that would entail breaking the agreement. Of course, if you need to change your rates and you express that to the client and they subsequently accept the revised terms of agreement, this would be valid.

It is normally best to be clear and avoid working on the basis of assumptions because often the latter can lead to disputation. And Allah knows best.