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‘Aqd al-Istisnaa’ (contract to have something made or done)

Question: 2146

What is ‘Aqd al-istisnaa’?
What are the rulings and conditions governing it?

Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.

‘Aqd al-istisnaa’ – which is a contract that applies both to the
labour and the product itself – is binding on both parties when it is drawn up in
accordance with certain conditions.

The following conditions apply to ‘Aqd al-istisnaa’:

  1. Clear statement of the type, amount and required features of the work to
    be done or product to be made.

  2. Specification of the time frame involved.

  1. In ‘Aqd al-istisnaa’ it is permissible to delay paying
    the full price, or it may be paid in installments at specific times over a limited period.

  2. It is permissible for ‘Aqd al-Istisnaa’ to include a
    penalty clause stating what the two parties have agreed on, so long as there are no
    circumstances beyond their control. And Allâh knows best.

Source

Majma’ al-Fiqh al-Islami, p. 144

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