INTRODUCTION OF SALAM

FINANCING
This contract is crucial during the time of prophet
hood and at the time where agricultural sector become
outstanding and supreme.
The wisdom of making Salam permissible lies in
the fact that Salam facilitates a types of financing for
people in need of it.
By using Salam contract, the buyer may benefit
from its permissibility as well, by acquiring the
commodity at a price below the market price.

DEFINITION OF SALAM FINANCING

Literally Salam means giving (ita), advance (taslif)
and leaving.
Technically:
Sale contract over prescribed commodity sold as a
deferred liability on one party, in exchange for a price
that is received during the contract session.
Maliki defined it as a sale in which capital sum (price)
is paid in advance and the object of sale is deffered to a
specified term.
AAOIFI defined Salam as the purchase of commodity
for deffered delivery in exchange for immediate
payment.

DEFINITION OF SALAM FINANCING

Bay as-Salam or Salam means a contract in
which advance cash payment is made for goods
to be delivered later on.
The seller undertakes to supply some specific
goods to the buyers at a future date in exchange
of an advance price fully paid at the time of
contract.
Salam- also know as sales by order.