Istisna’ (الاستصناع) is a type of sale (ba’i or bay’) in which the underlying asset (a predefined product known as al-masnoo’) is yet to be manufactured using the seller’s (al-sani‘s) raw materials and components at a price (thaman) agreed on at the time of the contract (majlis al-aqd). Delivery (to al-mustasni’– i.e., the purchaser) will take place at a predetermined future time.

The price of the object of istisna’a is subject to the following set of shari’ah stipulations:

• It must be known to the extent of removing jahalah (ignorance/ ambiguity or lack of knowledge).
• It must be a fixed amount that is not adjustable to the normal price changes. In other words, the price must not be increased or decreased on account of the normal increase or decrease in prices or cost of labor.
• It may be adjusted by the mutual consent of the parties to the contract owing to modifications in the object of istisna’a or due to circumstances beyond the control of the parties.