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Salam and Istisna'
One of the fundamental conditions of sale contracts in Islamic commercial jurisprudence is that the subject matter needs to be in existence. This is the case for almost every Islamic nominate contract used in Islamic finance, with few exceptions. This includes the contract of Salam and Istsina'.
(i) Explain the differences between Salam and Istisna' from a jurisprudential perspective.
(ii) Give one example each of both Salam and Istisna' when applied in the modern Islamic finance industry.
(iii) Explain how Salam and Istisna' are correlated with the contract of Ijarah mawsufa fi al Dhimmah.
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