This fatwa defines an istishna' agreement as a sale-purchase agreement whereby the purchaser (mustashni') places an order with the vendor (shani') to have a certain item made pursuant to certain criteria and conditions agreed upon by both parties. The fatwa also acknowledges that shari'a financial institutions are already implementing istishna' agreements, and that the Board believes a set of guidelines is necessary to ensure that such agreements are implemented in a shari'a-compliant manner.
Among other guidelines, the fatwa states that the quantity, form, specifications, and any other relevant information pertaining to the item must be clear, and that it may not be in the form of discharging a debt.