Islamic Finance Law from A-Z

A sale with the right of redemption, literally, a sale of honour. Typically, such a sale takes place when a commodity is sold on the condition that the seller be allowed to redeem the commodity upon paying its price; and the buyer agrees to honour the condition.    

Void, invalid. Said of a transaction, a contract which governs a transaction or an element in a such a contract when they are null and void. opp. sahih. 

Lit.Delayed-for-immediate sale. A type of sale in which the sale price is paid immediately and delivery of the sale item is delayed. Syn. bay` al-salam. 

Deferred payment sale, credit sale; a sale in which payment is delayed and delivery of the contracted goods is immediate 

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.

Lit. Two sales in one. A type of transaction, which was explicitly prohibited by the Prophet. The meaning of the expression "two sales in one" is explained by the fuqaha' in various ways. Also called "safaqatan fi safaqah."