BAY SALAM.pdf

BAI SALAM

1. BAY SALAM

2. CONTENT
Introduction
Definition
Evidence
Pillars of Bay Salam
Type of Salam contract
Objective of Bay Salam
Conditions of Bay Salam
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3. Introduction
•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 salampermissible lies in the fat that
salamfacilitates a types of financing for people in need of it.
•By using salamcontract, the buyer may benefit from its
permissibility as well, by acquiring the commodity at a price
below the market price.
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4. DEFINITION BAY SALAM

5. Definition
•Literally salammeans giving , advance and leaving.
•Technically:
-Sale contract over prescribed commodity sold as a
deferred lability on one party, in exchange for
a price that is received during the contract session
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6. Definition
•Maliki defined it is as a sale which capital sum
(price) is paid in advance and the object of sale is
deferred to a specified term.
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7. EVIDENCE BAY SALAM

8. Hadith
•Narrated by Ibn Abbas: The Messenger of Allah (s.a.w) came to Medina and the
society used to pay in advance the price of fruits to be delivered within one or two
years (the sub narrator is in doubt whether it was one to two years or two to three
years)
•The Prophet S.A. said, "Whoever pays money in advance fordates(to be
delivered later) should pay it for known specified weight and measure (of the
dates)

9. IJma’
• Every single jurist that we came across had given their consensus with regards to the
permissibility of Bay' Al-Salam particularly because the product in sale is one of counter-
values in a contract (similar to the permissibility of postponing the monetary payment
which is one of the counter -value as well).
• There is also the need of the people in it. The owners of the agricultural products and
businesses also needed some financing to support themselves or to fund their crops
until the day of harvesting. Hence, it is made permissible to fulfill these needs.

10. PILLARS OF BAY SALAM
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Rabb as-salam/
Musalim
The
Buyer
MuslamIlahi
The Seller
Ra’s al-Mal
The Price
Al-MusalimFih
The
Product
Sighah
1. Ijab(offer)
2. Qabul
(acceptance)

11. Ordinary salamcontract
TYPE OF
SALAM
CONTRACT
The normal salamcontract that involves two
transacting parties, the buyer and the seller.
Parallel salamcontract
•Contractual agreement consist of two
different and independent contract, one in
which the bank is buyer and the other in
which the bank is a seller
•The two contract cannot be tied up and
performance of one contract should not be
contingent upon the other.
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12. OBJECTIVE OF BAY SALAM

13. •Provide the financing for email and medium enterprise
The economies reality underlying the contract of Salam, the
ordering of goods to be delivered later for a price paid in
advance , was the financing of the business of a small trader
or artisan by his customers.
•Benefits the trader of producer
Provides Islamically accepted financing alternative and
avoids any involvement in riba.
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14. •Benefits the purchaser
Provides goods and products at a discounted price in return
the willingness of the purchaser to help the financing of the
business venture.
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15. CONDITION OF BAY SALAM

16. The jurists from various mazhabhad agreed that Bay' Al-Salam is
permissible provided that it specifies these six aspects (4 Ps + 2
Qs):
Product: The types and kinds of goods involved in the trade.
Period: The duration of the contract and its date of deliverv.
Price: The amount of capital or price paid for the contract.
Place: Place of delivery for the merchandise when it is due.
Quality: The characteristics and specifications of every item.
Quantity: The quantity of goods ordered by the buyer.
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17. Conditions related to the price (ra'sal-mal)
• The price must be clearly determined and paid in full by the buyer
at the time of undertaking the sale to avoid later dispute.
• The seller must take possession of the price in full before
dapertingone another; OTHERWISE it will be tantamount to the
sale of debt for a debt which is prohibited.
• Maliki jurist allowed it to be paid within few days as long as it is
not stipulated as conditions.* If the price is ribawiitem, it is not
allowed to be exchanged for another ribawiitem to avoid riba.
Eg:wheatwith barley.
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18. Conditions related to the purchased commodity (mussalam
fih)
•Salam can be effected on commodity whose quality and
quantity can be clearly specified; commodities which quality and
quantity cannot be specified cannot be sold through salam.
•The commodity must be vastly available in the market at the
time of contract until the time of delivery, to ensure the capability
of the trader to deliver the product.
•The quantity, weight and measure of the commodity must be
agreed upon in equivocal terms.
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19. Conditions related to the date and place of delivery
•The exact date and place of delivery must be specified in the
contract
•Scholars differ on the shortest duration of time of delivery either
3 davs, more than half a day thirty days or up to the contracting
parties to decide
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20. Thank you