Salam/Salaf

- Literally: pre-payment
- Technically: transaction where specific price is paid
immediately and specific goods are delivered later at specific
time
Ex: RM 1000 now - 500kg of rice upon harvesting time.
- Salam/Salaf was practiced even in pre-Islamic period but
without specifying measure, weight and time of delivery)
- Hadith says:whoever engages in a salam, let him specify a
known volume or weight, and a known term of deferment
(by six major narrators).
Ibn Abbas: the following verse refers to Salam:
O ye who believe! When ye deal with each other, in transactions
involving future obligations in a fixed period of time, reduce
them to writing Let a scribe write down faithfully as between the
parties (2:282).

Conditions
1) The price of the goods must be known.
2) Price should be paid during the session. Maliki School: can
be postponed up to three days.
3) The purchaser is not allowed to make his debt on the seller
as the price of Salam goods because it amounts to exchange
of obligation for obligation, which is forbidden.
4) The commodity sold should be as an obligation on the
seller.

 Muhammad bin Abi Al-Mujalid said: Abu Burda

and Abdullah bin Shaddad sent me to Abdullah bin
Abi Aufa to ask him about the Salaf (Salam). He
said: "We used to get war booty while we were with
Allah's Apostle and when the peasants of Sham
came to us we used to pay them in advance for
wheat, barley, and oil to be delivered within a fixed
period." I asked them, "Did the peasants own
standing crops or not?" They replied, "We never
asked them about it."

4) The seller should be able to deliver the commodity on the

specified date.
5) The place of delivery should be adequately specified.
6) The commodity should be described precisely by type,
quantity and quality.
7) The price and the commodity should not belong to the same
group of Ribawi commodities. Exchanging goods:
(measured for weighed or weighed for measured) Halal.
(measured for measured or weighed for weighed) Haram.

Hanafis: commodity should be present in the market from

the time the contract is concluded until the delivery is
made. To make sure that the seller is capable of delivery if
his own crops are destroyed by causes beyond his control.

Majority of schools: it is enough if commodity is

available in the market during the time of the delivery.

8) No reselling to a third party before it is handed over to him

from the original seller. Hadith says: Whoever buys
foodstuff (or anything), he should not sell it (to others)
before he receives it, or possess it.