What is Bay‘ al-Salam (Forward Sale) in Islam?

Source: Urdu Commentary of ‘Umdat al-Ahkam from the Sayings of the Best of Mankind
Translation by: Hafiz Faizullah Nasir

✿ Hadith No. 1: Definition and Conditions of Bay‘ al-Salam​

Narrated by: Abdullah ibn Abbas (رضي الله عنهما)

“When the Messenger of Allah (ﷺ) arrived in Madinah, the people used to engage in Salam contracts (advance payment for agricultural produce) for one, two, or three years. He said: Whoever conducts a Salam transaction must do so for a known quantity, with a known weight and a known term.”

✿ Explanation of Vocabulary:​

السَّلَم (Salam):
Also known as Bay‘ al-Salaf — a forward sale in which the price is paid in advance, but the commodity is delivered later. The item must meet specified standards and be delivered at a predetermined time.

✿ Explanation of the Hadith:​

This Hadith affirms the permissibility of Bay‘ al-Salam under strict conditions, namely:

❶ The quantity of the item must be clearly defined.
❷ The weight or measure must be known.
❸ The delivery date must be predetermined.

✔ If any of these are uncertain or ambiguous, the transaction becomes invalid under Islamic law.

Hadith References:
  • Sahih al-Bukhari, Book of Salam, Chapter: Salam for a Known Weight, Hadith: 2240
  • Sahih Muslim, Book of Musaqah, Chapter: Salam, Hadith: 1640
 
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