Islamic Contract – Bay’ al-Salam: Date and Place of Delivery

​Islamic Contract – Bay’ al-Salam: Date and Place of Delivery


Q1: Why must the delivery date be specified in salam?


Answer


The delivery date must be clearly known to:

• eliminate uncertainty;

• avoid disputes between contracting parties.

This is important because:

• salam involves future delivery of goods.

⸻


Scholars’ Views on Minimum Delivery Period


Muslim jurists differ regarding:

• the minimum permissible delivery period.

Some opinions include:

• minimum three days;

• more than half a day;

• at least thirty days;

• determined by agreement of parties.

⸻


AAOIFI Requirement on Delivery Date


According to AAOIFI SS No. 10 (Para 3/2/9):


the delivery date must be clearly known and free from ambiguity.


⸻


Example


Valid


“Delivery on 1 December 2028.”


Invalid


“Delivery sometime in future.”


⸻


Q2: Why must the place of delivery be specified?


Answer


The place of delivery should be specified especially where:

• transportation;

• shipping;

• logistics

are involved.


This clarifies:

• delivery obligations;

• transfer of possession;

• transportation responsibility.

⸻


Example


Valid Delivery Clause


“Delivery at Port Klang on 1 December 2028.”


⸻


Q3: Can the buyer sell the salam commodity before possession?


Answer


No.


According to AAOIFI SS No. 10 (Para 4/1):


the buyer cannot sell the muslam fīh before taking possession.


This is because:

• the buyer has not yet obtained possession;

• selling before possession may create uncertainty.

⸻


Example: Invalid Sale Before Possession


A buyer purchases:

• 100 tonnes wheat under salam.

Before delivery:

• the buyer sells the exact wheat to another party.

Problem


The buyer has not yet possessed the wheat.


Result


❌ Not permissible.


⸻


Example: Sale After Possession


After:

• wheat is delivered;

• buyer takes possession,

the buyer may:

• sell;

• lease;

• transfer the wheat.

Result


✅ Permissible after possession.


⸻


Important Principle


Salam is permitted as:


an exception to the normal prohibition of selling future goods.


Therefore:

• strict rules apply regarding:

• delivery date;

• delivery place;

• possession.

These rules minimise:

• uncertainty (gharar);

• disputes;

• injustice.