Requirements for Bai Salam

The Salam transaction is subject to the strict conditions as follows:

1. It is necessary for the validity of Salam that the buyer pays the price in full to the seller at the time of affecting the sale. In the absence of full payment, it will be the same as to sale of a debt against a debt, which is expressly prohibited by the Holy Prophet (PBUH). Furthermore the basic basis for allowing Salam is to facilitate the "instant need" of the seller. If it is not paid in full, the basic purpose will not be achieved.

2. Only those goods can be sold through a Salam contract in which the quantity and quality can be exactly specified e.g. precious/valuable stones cannot be sold on the basis of Salam because each stone differ in quality, size, weight and their exact specification is not possible.

 3. Salam cannot be affected on a particular commodity or on a product of a particular field or farm e.g. Supply of wheat of a particular field or the fruit of a particular tree since there is a possibility that the crop is destroyed before delivery and given such possibility, the delivery remains unsure.

4. All details in respect to quality of goods sold must be clearly specified leaving no ambiguity, which may lead to a dispute.

 5. It is necessary that the quantity of the goods is agreed upon in absolute terms. It should be measured or weighed in its usual measure only, meaning what is normally weighed cannot be quantified and vice versa.

6. The exact place and date of delivery must be specified in the contract.

7. Salam cannot be affected in respect of things or goods, which must be delivered at spot.