Istisna means asking someone to build, build or manufacture an asset. In Islamic finance, istisna` is usually a long-term contract by which a party undertakes to manufacture, build or build assets, with the obligation for the manufacturer or manufacturer to deliver them to the customer once completed. In practice, the main advantage of an Istisna contract is that it can offer flexibility to the customer, as payments can be made in tranches related to the closing of the project, delivery or after the project outcome. Unlike istisna`, the payment of the Salam contract must be made in full in advance. The Istisna agreement refers to an Istisna agreement in which the seller sells and the investment agent buys the Development of Istisna in accordance with the provisions of this agreement. Infrastructure projects are the most important examples of istisna. These include the construction of power plants, factories, roads, schools, hospitals, buildings and housing. The parties to an Istisna contract are: the manufacturer or manufacturer; The bank (i.e. the financier) and the customer (i.e.
the purchaser of goods). Main construction contract means, with regard to the development of Istisna, the construction agreement between the seller and the owner for the construction of the development of Istisna, as established in Schedule A (specifications and other cases) of the Istisna agreement by the letter of offer and acceptance. For the istisna to be valid, the price must be set in advance. In the event of an unforeseen delayed delivery event, the price of istisna` may be changed if it is agreed. Once the work has begun by the manufacturer, the contract cannot be terminated unilaterally. With regard to the development of Istisna, the joint agreement, reached on or beyond the agreement between the seller (as a company) and the investment agent, means that this agreement was reached on the date of this agreement. The above structure is also called « simple istisna, » based on the assumption that the buyer has the necessary financing to be able to consult directly with the builder on the project. If the buyer does not have the financing, it is possible to use the parallel structure istisna` next.
The agreement is signed between the bank and the customer, which defines the conditions for the manufacture of the goods, including the price of entry, place of delivery, quantity and quality.