Bay` al-Salam

A contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of the contract. According to normal rules of the Sharia, no sale can be executed unless the goods are in existence at the time of the bargain, but Salam sale forms an exception given by the holy Prophet himself to the general rule, provided the goods and their prices are defined and the date of delivery is fixed. It is necessary that the quality of the commodity intended to be purchased is fully specified, leaving no ambiguity leading to dispute. The objects of this sale are goods and not media of exchange like gold, silver or currencies, because these are regarded as monetary values, the exchange of which is covered under the rules of Bai‘al Sarf, i.e. hand to hand without delay. Barring this, Bai‘Salam covers almost everything which is capable of being definitely described as to quantity, quality and workmanship, subject to the fulfillment of other conditions for valid Salam.