Bay' salam: principles and practical application

Bay' al-salam is a sale in which the seller receives an advance payment for a deferred supply of goods. Bay' al-salam is an explicit exception to the prohibition of the sale of a commodity not possessed by the seller. Bay' al-salam is necessary for farmers and traders and is allowed under certain circumstances. In such a sale: a potential grower or manufacturer who possesses necessary inputs can contract against advance payment; the buyer should advance the price of the good at the time of contracting; the good should be generally available at delivery time; the good should not be money; and the specification of the good should especially take account of price variation. Bay' al-salam is legal by a consensus of the schools of law but differences of opinion exist over the: time of payment; specifications of the contracted commodity; determination of the price; period of delivery; options of the contract; and issues regarding the revocation of the contract. Bay' al-salam plays an i