billah's thought for the day: Istisna' vs Salam Contract

Thursday, January 26, 2017

Istisna' vs Salam Contract

Istisna’ vs. Salam

Istisna’ (manufacturing contract)	Salam (sale by deferred payment)
An Istina’ Contract is a Contract of Service / Manufacturing / Development as per agreed terms	A Salam Contract is a Sale of product / asset / commodity by deferred delivery as per agreed terms
In an Istisna’ Contract the required service / manufacturing / development is the subject matter of the contract	In a Salaam Contract the underlying asset / commodity / product is the subject matter of the contract
The subject of Istisna is always a thing which needs manufacturing,	The subject of Salam can be effected on anything, no matter whether it needs manufacturing or not
It is not necessary in Istisna’ that the price is paid in full in advance	It is necessary for Salam that the price is paid in full in advance
The contract of Istisna can be cancelled / revoked before the manufacturer starts the work.	The contract of salam, once effected, cannot be cancelled / revoked unilaterally
The time of delivery is not essential part to be fixed In Istisna’ contract	The time of delivery is an essential part of the sale in Salam

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Short Profile

Mohd Ma'Sum Billah, PhD, is a Malaysian.

He was born in a respectable learned ('Ulama')family. His father was Mufti (Islamic jurisprudential expert) while his mother was religious teacher specializing in Tasauuf. "May Allah (swt) grant them Jannatul Ferdaus".

Currently he is a Professor (finance, insurance, investment, capital market, petroleum finance & trade and social finance), King Abdul Aziz University, Saudi Arabia.

He began his academic career with the faculty
of law and subsequently with the department of business administration of the International Islamic University Malaysia (IIUM), Malaysia.

He had been serving as a proposed VC of a proposed university (UCTECH) in Malaysia, which aimed at establishing possible internationally standard education & research opportunities in applied science, technology, health-care, finance, business, IT and social science related programs both at undergraduate and postgraduate levels.

He had also served as a director for the “Islamic Chamber of Commerce & Industry (OIC Countries), Jeddah, Saudi Arabia”, in charge of global trade & investment cooperation.

Billah in his professional capacity as a visiting professor, adjunct-professor, external supervisor, external examiner & viewer had also been lecturing, supervising and examining at both degree, post-graduate & post-doctoral levels in several universities and countries including Malaysia, Saudi Arabia, Australia, Iran, USA, UK, Pakistan, Russia, Brunei, Indonesia, Singapore, UAE, Egypt, China, Japan, Germany, Africa, India, Canada and to name a few.

Billah has authored a series internationally refereed books / chapters in book in the leading specialized subjects of applied Islamic & comparative finance, insurance, trade, investment, capital market, sukuk, waqf, social finance, business, e-commerce, corporate laws & policies. Out of which, 31 have already been published by several reputable publishers including Thompson Reuters, Sweet & Maxwell, Edward Elgar, McMillan Palgrave, IIBI and so on, which had been being used as a reference by universities, researchers, governments, NGOs, professional sectors, students and industries in different parts of the world.

He has also written and duly published more
than 200 articles in different refereed Journals, Periodicals, Encyclopedias & Medias on applied Comparative & Islamic finance, insurance, capital market, waqf, social finance, sukuk & corporate issues globally.

He had also been actively presenting more than 300 specialized lectures & papers at Conferences, Conventions, Summits, Seminars & Executive Workshops internationally, regionally and locally as well on applied Comparative & Islamic finance, insurance, petroleum finance, sukuk, waqf, social finance, capital market, investment & corporate issues.
.

He had been actively sharing his ideas in different medias (TV, radio, newspapers, magazines, periodicals & talk shows) on the specialized issues of Islamic & comparative finance, insurance, investment, trade, social finance & corporate solutions internationally, regionally and locally as well.

Billah had been sitting & contributing in his capacity as the member in more than 30 different boards of financial, academic, corporate & NGO organizations internationally, regionally & locally.

He in his capacity as an adviser, board of directors, consultant & viewer, had been offering his humble intellectual contributions globally on both modern & Islamic financial reform & transformation, applied Islamic and comparative finance, insurance, investment, government strategies & policies (finance, insurance, investment, capital market, social finance & trade), privatization, industrialization, public finance, money, global trade & shipping, foreign export, petroleum trade and finance (oil & gas), barter trade, halal standard, audit standard, e-commerce, insurance, takaful, business, cooperative micro-finance, cooperative micro-bond, sukuk, REITs, financial instruments, project finance, waqf, social finance, global investment cooperation and also Shari'ah compliance of modern financial system to suite the contemporary reality.

Among the contributions in the above specialized sectors are, as to products, technicalities, government policies, strategies, instruments and operations.

Objectives in the above contributions are (inter alia) the humanitarian concern with socio-economic democracy for all underprivileged ones by helping them enjoying with eco-peace and prosperity within the holistic spirit & universal value of brotherhood, mutual cooperation, utmost care & concern by no issue of one's religion, race, color, gender, status, nationality or personality.

Thursday, January 26, 2017

Istisna' vs Salam Contract

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