Is it permissible for the contractor to terminate the construction contract with the company that breached its terms, given that signed trust receipts exist?
What transpired between you and the company is a manufacturing contract (Istisna' contract). Accordingly, the company must complete the construction according to the terms of the contract. If the company breaches any condition, you have the right to refuse the manufactured item unless it meets the agreed-upon specifications. If it is impossible to achieve the stipulated specifications, the contract may be rescinded, or an agreement may be reached to modify the terms and price. If the company procrastinates and you incur damage, you may rescind the contract to avert the harm, while being obligated to pay the value of the work the company has completed.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 101621
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy