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It is permissible to purchase a described commodity to be delivered at a specified future date, provided that the full payment is made at the time of the contract. This is known as a Salam contract, and it is supported by the saying of our beloved Prophet Muhammad (peace be upon him): “Whoever pays in advance for something, he must do so for a specified measure and weight, to be delivered at a specified time” (narrated by Al-Bukhari, 2241, and Muslim, 1604).
In such a contract, the seller commits to delivering the commodity at the specified time, and the profit or loss for both the buyer and the seller depends on the commodity’s price at the time of delivery.
For instance, a buyer may pay ten dollars for a commodity; at delivery time, the market price may be fifteen dollars. In this case, the buyer profits. Similarly, the seller benefits from the money during the specified period. However, if the market price at the time of delivery is eight dollars, the buyer who paid ten dollars incurs a loss.
Ibn Qudamah, may Allah have mercy on him, said in “Al-Mughni” (4/207): “The Salam contract involves delivering a present payment for a described commodity to be delivered at a future date. It is called Salam or Salaf, and it is a type of sale that is concluded with the same conditions as a sale, with the additional terms of Salam and Salaf. It is valid according to the Quran, Sunnah, and consensus.”
In the Quran, Allah says: ‘O you who have believed, when you contract a debt for a specified term, write it down’ [Al-Baqarah: 282]. Saeed narrated with his chain of transmission from Ibn Abbas that he said: ‘I testify that the deferred Salam is permissible by Allah’s book,’ and he recited this verse. This verse covers the Salam contract with its generality.
In the Sunnah, Ibn Abbas narrated that the Messenger of Allah (peace be upon him) came to Medina, and people were paying in advance for fruits to be delivered in one or two years. He said: ‘Whoever pays in advance for something, he must do so for a specified measure and weight, to be delivered at a specified time’ (agreed upon).‘
Al-Bukhari narrated from Muhammad ibn Abi Al-Mujalid that Abu Burdah and Abdullah ibn Shaddad sent him to Abdur-Rahman ibn Abza and Abdullah ibn Abi Awfa to ask them about Salam. They said: ‘We used to contract Salam during the time of the Messenger of Allah (peace be upon him) with the people of Sham, who would bring us wheat, barley, and raisins. We did not ask if they had the crops or not.’
As for consensus, Ibn Al-Mundhir said: ‘All scholars we know agree that Salam is permissible because it is necessary for people. Farmers, merchants, and traders need money for their living expenses and for their crops to grow. They may lack funds, so Salam is permitted to benefit them and the buyer benefits from the discount.’
The phrase ‘and the buyer benefits from the discount’ indicates that the buyer usually gets the commodity at a lower price because it is deferred.
It should be noted that the sale is concluded when the payment is made, and the delivery of the commodity is deferred. The sale is not conditional on the arrival of the thirty-first day, nor is it a future sale. Conditional or future sales are not permissible.
