SHARIAH-COMPLIANT SOLUTIONS FOR DEFERRED TRANSACTIONS: THE JURISPRUDENCE AND CONTEMPORARY RELEVANCE OF BAI' SALAM AND ISTISNA' IN ISLAMIC FINANCE

Abstract

In light of the commands given by Islamic Shariah, when we study commercial transactions, it becomes clear that one of the important conditions for the sale is that the goods must be present at the time of the contract. The scholars of the Muslim Ummah, while describing commercial transactions, have mentioned that one of the important conditions is that the goods must be present at the time of the sale. This condition is valid across all schools of Islamic jurisprudence.

The question arises that in some cases or situations, the contracting parties need to enter into a contract where the goods are not present at the time of the sale but are on credit. So, is the sale of credit goods permissible? And if it is permissible, what are its limits and conditions? The principles and rules provided by Islam are for the welfare and convenience of humans. The main purpose of Islam's teachings and certain limits regarding the sale contract is to protect the rights and capital of the seller and buyer and to keep the contracting parties safe from any kind of dispute and conflict in the present or future. Along with this, Shariah also ensures convenience and ease for humans and, where necessary, allows certain matters within specific limits through exceptions. Such transactions include Salam(سلم) and Istisna (استصناع) contracts. This research article discusses these two contracts, explaining their rules and conditions.