Istisna In Islamic Banking & Finance

The emergence of Islamic Banking represents one of the important characteristics of Islamic resurgence in our time. Many Islamic commercial contracts such as Mudarabah, Musharakah, and Murabahah have been revived. Istisna in its own right can play an important and, in many ways, a leading role in the Islamic Banking system. Especially when the major parts of goods in commercial transaction are manufactured goods and notable due to the flexible legal nature of Istisna and its secure aspect of investment. >The present book is an extensive and critical analysis of this contract from the classical source of Islamic law and the practice of contemporary Islamic financial institutions. It addresses the nature of this contract, its conditions, the general and specific argument for the legality of this contract, its binding character and the sellerئs stipulation to preclude his liability from any defect in the manufactured commodity. >Furthermore, it expounds the issue over the liquidated damages and its relation with Istisna, the doctrine of change of circumstances and its implications and arbitration as dispute resolution in Istisna. >Finally, it elaborates the practical aspects of Istisna especially its role in economic development, areas of its applications, the criteria of project evaluation, security and risk management, insurance and the legal status of the consultant agent pertaining to Istisna.