Professional Documents
Culture Documents
Manufacturer use his own material. Quality and Quantity should be agreed in
It is necessary for the validity of Istisna’a that the price is fixed with the
consent of the parties.
2. Bank would then enter into an Istisna transaction with the Customer for
the production of specific Goods. At this time quantity, price, specification
and delivery date of Goods will be agreed. The delivery of goods could be
lump sum or in trenches.
3. Bank could pay the Istisna price to the Customer either in full or in
installments.
4. After manufacturing, the Customer will inform Bank and will request for
acceptance of delivery. A Bank representative will accept the delivery after
physical inspection of the goods at the site. This delivery could be through
identification and separate storage of Bank goods (so that they are not
mixed with Customer’s own goods). A Goods Receiving Note will be
executed at this moment to evidence the delivery of goods to Bank.
5. Bank will also enter into a separate Agency Agreement with the Customer
for sale of goods on Cash basis to credible buyers on behalf of Bank in a
specified number of days. In this manner the Agent will be responsible for
recovery of Sale price and its payment to Bank.
6. Bank’s ownership and risk in goods remains until the Agent sells these
goods to the Buyer in the market. Takaful may be obtained to cover this
risk.
7. Bank Agent will sell the goods in the market and will pay the price to Bank.
This agreement sets out the terms & conditions upon which the
Bank, from time to time, orders the Customer to manufacture
the Goods.
Components :
2. Agency Agreement
Components :
A. Notice of Appointment