Qist Maktab · Islamic Studies · Class 10

Module 02Lesson 04

Salam, Istisna‘ and Advance Transactions

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Salam, Istisna‘ and Advance Transactions

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01

Learn the main idea

Salam is a forward sale with prescribed conditions including advance payment and specified goods. Istisna concerns commissioned manufacture and has its own Hanafi rules.

02

A deeper explanation

Salam is a special forward sale in which the buyer pays the agreed price in advance for goods described by precise specifications and delivered later. Its conditions prevent disputes about quantity, quality and delivery. Istisna is a manufacturing or construction contract in which a party commissions something to be made, and Hanafi law recognises distinctive rules for it. These are not interchangeable labels: the nature of the subject and payment arrangements must be understood.