A Comparative Study of Transferring Property in Manufacturing Contract (Istisna')

The most important question in connection with future goods (Istisna’), the passing of property, will be dealt. When dose the passing of title take place: the time the contract is made or goods is manufactured or the manufactured goods is delivered? Undoubtedly, identifying the nature of Istisna’ contract has direct impact on the passing of property.The dominant tendency in Iranian law is that the Istisna’ is a sale contract, and some of the jurists say that it is an enterprise contract. The Pre-sell Building Act (2010) has not clarified the issue. The Afghan Civil Code has expressly provided that Istisna’ is an enterprise contract which is taken from Egypt Civil Code.In this article, our aim is to study the time of passing of the title by examining both of the above mentioned assumptions, and also to explain the exact nature of Istisna’. Our idea is that the Istisna's nature is a combination of sale and employment contracts. That means, Istisna’ is an independent contract; not just a sale contract or an employment contract.