1. Bai As-Salam and Bai Istisna’ Sales by Order (Tempahan)

14. Parallel Salam

23. Differences between Salam and Istina’ Bai Istina Bai As Salam The subject of Istisna is always a thing which needs manufacturing, Salam can be effected on any thing, no matter whether it needs manufacturing or not. Payment for Istisna can be made in staggered basis. It is necessary for Salam that the price is paid in full in advance, while it is not necessary in Istisna The contract of Istisna can be cancelled before the manufacturer starts the work. The contract of Salam, once effected, cannot be cancelled unilaterally,

24. Differences between Salam and Istina’ Bai Istina Bai As Salam The asset manufactured must meet specification of the order and the buyer has the right not to take possession of the asset if the specifications are not met. The object of the Salam is a liability on the seller to deliver, thus should be in the form of fungible goods i.e. easily replaced from the market should the seller be unable to deliver. The time of delivery is fixed. The time of delivery is an essential part of the sale in Salam while it is not necessary in Istina Any penalty for charged late delivery can reduce the price of an Istisna contract The penalty amount is paid to charity (not taken as benefit for the buyer).

26. End of Lecture