Islamic Contract – Bay’ al-Salam: Commodity (Muslam Fīh) in Salam Contract

Islamic Contract – Bay’ al-Salam: Commodity (Muslam Fīh
) in Salam Contract
​
Q1: What is muslam fīh
in a salam contract?
Answer
Muslam fīh refers to:
the commodity or goods to be delivered in the future under a salam contract.
Since salam involves:

• deferred delivery of goods,

the commodity must be:

• clearly specified;
• standardised;
• deliverable;
• recognised by the Sharī‘ah.

Q2: What are the conditions of the salam commodity?
Answer
The salam commodity must fulfil several conditions.


1. Commodity Must Be Valuable and Sharī‘ah-Compliant
The commodity must:

• have commercial value;
• be lawful according to Sharī‘ah.

Examples
✅ Rice
✅ Wheat
✅ Palm oil
✅ Sugar
Invalid Examples
❌ Wine
❌ Pork


2. Commodity Must Be Clearly Specifiable
The commodity’s:

• type;
• quality;
• quantity;
• grade;
• specifications

must be clearly known.
This avoids:

• uncertainty (gharar);
• disputes.

Example
Valid Specification

• 10,000 kg Grade A Thai rice.

Invalid Specification

• “some good rice.”

The second description is too vague.


3. Quantity Must Be Precisely Determined
The quantity must follow market custom.
If Sold by Weight
Weight must be specified.
Example

• 5,000 kg wheat.

If Sold by Volume
Exact volume must be specified.
Example

• 2,000 litres palm oil.

If Sold by Count
Exact quantity must be specified.
Example

• 1,000 identical bricks.

Important Rule
What is normally sold:

• by weight → must remain by weight;
• by volume → must remain by volume.

4. Commodity Must Be Generally Available in Market
The commodity should normally:

• exist in market supply at delivery time.

This reduces:

• risk of non-delivery.

Example
Valid
Standard market wheat.
Invalid
Rare collectible item unavailable in market.


5. Commodity Cannot Be a Specific Identified Asset
Salam must involve:
a liability upon the seller,
not:
a specific identified asset.


Example
Invalid Salam
“I sell you THIS specific car after 6 months.”
Problem
The contract concerns:

• a specific identified asset.

Result
❌ Invalid salam contract.


AAOIFI Requirements Regarding Muslam Fīh
1. Salam Cannot Be for Specific Asset
(Para 3/2/3)
Example
❌ “This exact vehicle.”


2. Currency, Gold, and Silver Restrictions
(Para 3/2/4)
If salam capital is:

• currency;
• gold;
• silver,

then the salam commodity cannot also be:

• currency;
• gold;
• silver.

This avoids:

• ribā.

Example
A buyer pays:

• gold now
  for:
• gold later.

Result
❌ Invalid salam.


3. Commodity Must Be Precisely Specifiable
(Para 3/2/5)
The seller must be capable of delivering:

• according to exact specifications.

4. Commodity Must Be Clearly Known
(Para 3/2/6)
Specifications must eliminate:

• ambiguity;
• uncertainty.

Case Study: Valid Salam Commodity
A buyer enters salam contract for:

• 50 tonnes Grade A wheat.

Contract Details

• Weight clearly specified.
• Quality clearly specified.
• Delivery date fixed.

Analysis
The commodity is:

• fungible;
• measurable;
• market available.

Result
✅ Valid salam commodity.