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    Feature of A Valid Salam Contract

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    lakhsmi
    The key features of a valid Salam contract are: 1. The price must be clearly determined and paid in full by the buyer at the time of the contract to avoid disputes. 2. The commodity being purchased must be clearly specified in terms of quality and quantity and be widely available in markets at the time of the contract and delivery. 3. The exact date and place of delivery of the commodity being purchased must be specified in the contract.

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    Feature of A Valid Salam Contract

    Uploaded by

    lakhsmi
    235 views2 pages
    The key features of a valid Salam contract are: 1. The price must be clearly determined and paid in full by the buyer at the time of the contract to avoid disputes. 2. The commodity being purchased must be clearly specified in terms of quality and quantity and be widely available in markets at the time of the contract and delivery. 3. The exact date and place of delivery of the commodity being purchased must be specified in the contract.

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    Valid salam contract

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    Feature of a Valid Salam Contract

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    The key features of a valid Salam contract are: 1. The price must be clearly determined and paid in full by the buyer at the time of the contract to avoid disputes. 2. The commodity being purchased must be clearly specified in terms of quality and quantity and be widely available in markets at the time of the contract and delivery. 3. The exact date and place of delivery of the commodity being purchased must be specified in the contract.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    235 views2 pages

    Feature of A Valid Salam Contract

    Uploaded by

    lakhsmi
    The key features of a valid Salam contract are: 1. The price must be clearly determined and paid in full by the buyer at the time of the contract to avoid disputes. 2. The commodity being purchased must be clearly specified in terms of quality and quantity and be widely available in markets at the time of the contract and delivery. 3. The exact date and place of delivery of the commodity being purchased must be specified in the contract.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    Feature of a Valid Salam Contract

    Conditions related to the price (ras al-mal)


    The price must be clearly determined and paid in full by the buyer at the time of undertaking
    the sale to avoid later dispute
    The seller must take possession of the price in full before departing one another
    other!ise it !ill be similar to the sale of debt for a debt !hich is prohibited"
    #aliki $urist allo!ed it to be paid !ithin fe! days as long as it is not stipulated as
    conditions"
    %f the price is riba!i item& it is not allo!ed to be e'changed for another riba!i item to
    avoid riba" (g) !heat !ith barley" Cash payment is not necessary in Salam the price can
    be credited to the sellers account"
    Conditions related to the purchased commodity (mussalam fih)
    Salam can be effected on commodity !hose *uality and *uantity can be clearly specified
    commodities !hich *uality and *uantity cannot be specified cannot be sold through salam"
    The commodity must be vastly available in the market at the time of contract until the time
    of delivery& to ensure the capability of the trader to deliver the product"
    The *uantity& !eight and measure of the commodity must be agreed upon in e*uivocal
    terms"
    Conditions related to the date and place of delivery
    The e'act date and place of delivery must be specified in the contract
    Scholars differ on the shortest duration of time of delivery either + days& more than half a
    day thirty days or up to the contracting parties to decide"
    ,hiyar (option) in salam
    -fter taking delivery& the purchaser has the .option of defect/ (,hiyar-e--ib)" 0ot .option
    of seeing/ (,hiyar-e-ruyat)
    1evoking the Salam contract
    -fter e'ecution of Salam agreement& it cannot be revoked unilaterally !ithout mutual
    consent of both parties"
    2enalty for non performance Seller can undertake in the Salam agreement that in case
    of late delivery of Salam goods& he shall pay to the charity account maintained by the bank a
    sum calculated on the basis of3"4 per annum for each day of default& bank !ill spend this
    amount in charity purpose on behalf of the client"
    This undertaking is infact a sort of self-imposed penalty to keep oneself a!ay from
    default"
    Salam in currencies
    The ma$ority of $urists do not allo! Salam in gold& silver& currencies or monetary units&
    although a fe! $urists have allo!ed it and& as such& a fe! %slamic banks have been using
    Salam in currencies as an alternative to bill discounting"
    5old& silver and other metallic money like Fulus of copper or other metals can be used
    for some purposes other than for making payments hence& they can be traded keeping in
    mind the Shar6ah principles" 7o!ever& paper money can be used only in payment of a price&
    it cannot serve as a commodity to be sold

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