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The question

What is the ruling on one of the contracting parties unilaterally rescinding a binding contract, especially in a manufacturing (Istisna') contract, and does the ruling differ based on the type of contract?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Necessary contracts cannot be unilaterally revoked by either party without a valid excuse. If one party revokes the contract without a valid excuse, the contract does not become void, and its effects remain. The contracting party is entitled to compensation. This applies to leasing () and manufacturing contracts (istisna'). Therefore, if someone leases a property or commissions the manufacturing of something, and then retracts without a valid excuse, they are obligated to pay the full rent or price. The manufacturer is obliged to deliver the commissioned item, and the commissioner is obliged to pay the agreed price.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
168144
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.
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Read the full answer on Ftawy