Receiving an Advance Payment

Written by: Shaykh Hafiz Abdul Sattar Al-Hammad (May Allah preserve him)

"Whoever wants to engage in a contract of sale (Salm) for dates, let him specify the measure, the weight, and the time period clearly."
[Sahih Muslim, Book of Irrigation: Hadith 4118]

Benefits:​

It is permissible to receive an advance payment for goods to be delivered at a later date. In Islamic jurisprudence, this is known as Bay' Salam or Bay' Suf. This type of sale was practiced during the time of the Prophet (صلى الله عليه وسلم), and he approved of it, though certain conditions are outlined in the above Hadith.

Conditions for​

The following conditions must be met for the transaction to be valid:
  1. The quantity of the item to be delivered must be clearly specified and paid for at the time of the contract.
  2. The description of the item must be clear so that there is no room for ambiguity or disputes about the quantity and type of the product.
  3. The time of delivery must be specified, meaning the delivery date should be clearly determined.
This type of transaction was originally deemed impermissible due to the non-existence of the goods at the time of contract, but for economic considerations and ease for the people, the Shari'ah allowed it under these specified conditions.

Example from the Sahabah:​

Sayyidina Abdullah bin Abi Awfa (رضي الله عنه) was known to engage in Bay' Salam transactions. When asked whether the produce was available at the time of the contract, he responded that they did not inquire about the produce's availability at the time, as long as the terms were clear.
[Sahih al-Bukhari, Book of Salam: Hadith 2255]

Conclusion:​

For an advance sale (Bay' Salam) to be valid, the goods must be clearly identified, the measurement or weight should be specified, the price should be agreed upon, and the delivery date must be established. If these conditions are met, the transaction is permissible.
 
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