This document summarizes an Istisna and Salam contract presentation by 7 students. It defines Istisna as an agreement to purchase a non-existing asset to be manufactured according to specifications. Salam is defined as an advance payment contract for goods to be delivered in the future. The presentation covers product features, conditions, modes of financing including using the manufacturer as an agent, documents used, eligibility criteria, and potential uses for house financing and construction projects.

1. PRESENTED BY:-
1. Abubakar Ali Toor
2. Muhammad Hanzala
3. Rana Usama Saif
4. Muhammad Mubashar
5. Anum Saleem
6. Shanzeh Naseem
7. Ramsha Akhtar
PRESENTED TO:-
Sir Asim Faheem

3. Project
Salam & Istisna Contract

4. Istisna contract
• An Istisna contract refers to an agreement to purchase
from a customer a non-existing asset, which is to be
manufactured or built according to the buyer’s
specifications and is to be delivered on a specified
future date at a predetermined purchase price

5. Salam Contract
• In Salam, the seller undertakes to supply specific
goods to the buyer at a future date in exchange of an
advanced price fully paid at spot. The price is in cash
but the supply of purchased goods is deferred.

6. Product Features & Conditions
• Price Determine
• Price to be known
• Flexible repayments
• A Binding Contract
• Goods Delivery
• Goods Rejection
• Defect Intimation Time
• Rescheduling the Payment Period
• Prior Delivery

7. Mode Of Financing
• Manufacturer will enter into a Master Istisna/ Salam Agreement
• Price is generally lower than the price in spot sale.
• Appoint the Manufacturer as an Agent
• Tenor of the facility must not exceed 180 days
• Bank charge its agency fee
• Agreed profit ratio
• The time of delivery is fixed
• Agent’s Responsibility of losses

8. Use Of Contract
• House financing (construction of houses, residential towers, etc.)
• Construction of buildings, plants, highways, bridges,
• Manufacturing of aircrafts, ships, machines, plant / factory and
equipment etc

9. Documents to be used in Istisna Financing
• Master Istisna/ Salam Agreement
• Master Agency Agreement for Sale of Goods
• Master Corporate Guarantee
• Ultimate Selling to Local Buyers
• Ultimate Selling to Foreign Buyers

10. Eligibility Criteria
 Customer Type
• Every Business Enterprises (Small / Medium / Corporate &
Commercial)
 Experience & Earning Capacity
• In the same business for the last 3 years
• In profit at least for the last 2 years

11. Thank You!