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Advance Payment To Contractor In Istisna
Such a transaction is not permissible since the additional percentage is akin to interest. The correct method of payment in an Istisna contract is...
 
Agent Managing Construction Work In Istisna
It is permissible for a bank to appoint an agent to oversee the construction project, approve payments to the contractor, and receive the completed...
 
Construction Work Under Istisna Contract
Such an arrangement is permissible under an Istisna contract, based on the following procedure/conditions:

• The land owner would hand...
 
Supervising Of Construction Work Under Istisna
It is permissible for a bank to draft a separate contract agreeing to represent the client in supervising the contractor’s implementation of the...
 
Cost Of Subsequent Changes To Asset Manufactured Under Istisna
The parties to the Istisna contract may alter the contract and clearly specify the amount payable for the agreed-upon changes. The bank should not...
 
Deferred Delivery Of Published Works Purchased Under Istisna
It is permissible to purchase published works under an Istisna contract and to defer delivery. Payment may be either advance or deferred. It is...
 
Bank Obtaining Discounts From Contractor In Istisna
It is permissible for the bank to obtain discounts from the contractor without passing them on to the requestor since these are two separate...
 
Bank Obtaining Discounts From Subcontractor In Istisna
The subcontractor is hired by the lead contractor and the bank is not a party to the contract between them. It would not be permissible for the...
 
Financier’s Rejection Of Goods In Istisna
The financier reserves the right to reject products not manufactured to specification, though must accept items manufactured equal to or superior...
 
The Financier May Also Be Manufacturer In Istisna Agreement
It is permissible for the financier to play the role of manufacturer: for example, a financial intermediary like a bank can enter into an Istisna...
 


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