THE CONTRACT OF BAY’ AL-SALAM AND ISTISNA’ IN ISLAMIC COMMERCIAL LAW: A COMPARATIVE ANALYSIS

Abstract

This paper aims at exploring the comparison between bay’ al-salam and istisna’ from the perspective of their similarities and differences. For this purpose, the nature and conditions of bay’ al-salam and istisna’ contracts will be first discussed. Next, the paper will focus on the comparison between bay’ al-salam and istisna’. The paper is based on secondary data which is to compare bay’ al-salam and istisna’. This study found there were obvious differences and similarities between bay’ al-salam and istisna’. For instance, bay’ al-salam whereby people pay first and goods will be delivered later. In contrast, istisna’ sale is based on specification whereby price and goods are deliveredlater. This paper indeed gives an overview of these products.