Is it permissible for the lessee to sublease the property after taking possession, but directly from the original lessor (a second lease)?
General Chapter
Al-Mughni
Book of Leasing
Primary text
Subleasing after possession directly from the lessor is permissible according to al-Shafi'i. The evidence supporting this is that any contract valid with a non-contracting party is valid with the contracting party, as seen in sales contracts. The lessee is entitled to receive the usufructs during the entire term, and the initial act of taking possession satisfies the initial obligation of delivery, while the entitlement to delivery during the term represents a subsequent right that does not cause contradiction when resold.
Supporting text
Abu Hanifa states this is impermissible as it leads to a contradiction in rulings: the lessor is obligated to deliver the usufructs, and upon the lessee subleasing, the subleasee becomes entitled to what the original lessor owes the original lessee, creating a circle of entitlement against obligation which is contradictory.