Istisna
A manufacturing contract where a party undertakes to produce a specific item.
Overview
Istisna is a contract of sale where a manufacturer agrees to produce and deliver a specific item at a predetermined price on a specified future date. Unlike Salam, payment can be made in installments and the specifications can be more customized.
Common Applications
- Construction projects
- Aircraft manufacturing
- Ship building
Key Features
- Flexible payment terms
- Customized specifications allowed
- Manufacturer responsible for raw materials
- Contract can be canceled before production begins