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COMPLETION AND
16 DISSOLUTION OF

ISTISNA’ CONTRACT

DISSOLUTION (FASAKH)

▪ An istisna` contract must be dissolved

unilaterally under:
COMPLETION (INTIHA’) (a) the purchaser in an istisna` contract with

▪ An istisna` contract is completed earnest money (`urbun) terminate the istisna`
upon: contract within the specified time period

(a) acceptance of the istisna’ asset by (b) the purchaser exercises the option to terminate
the purchaser the istisna` contract prior to its acceptance

(b) full settlement of the agreed price (c) the purchaser exercises the defect option
by the purchaser (khiyar al-`ayb) to terminate the istisna`

contract

(d) any of the contracting parties exercises the

mutually agreed options to terminate the

istisna` contract within the agreed time period

(e) the purchaser exercises the option the

terminate the contract due to the seller’s failure to

deliver the istisna` asset.