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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.
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