Istisna

This is a kind of Sale where a commodity is transacted before it comes into existence. It means: To order a manufacturer to manufacture a specific commodity for the purchaser. If the manufacturer undertakes to manufacture the goods for him with or without material from the manufacturer, the transaction of Istisna’a comes into existence. But it is necessary for the validity of Istisna’a that the price is fixed with the consent of the parties and that necessary specification of the commodity (intended to be manufactured) is fully settled between them. This kind of Sale is also used as a mode of financing for manufacturers.