BAY SALAM –

Definition, Basic Conditions and Benefits

Outline

 Bay Salam – Meaning

 Bay Salam – Definition

 Bay Salam – History

 Bay Salam in Quran

 Bay Salam in Hadith

 Bay Salam –Terms and Conditions

 Bay Salam – Benefits to Buyer and Seller

Bay Salam – Meaning

 Bay Salam is also called Bay Salaf

 Meaning: Forward Sale

 Technical Meaning: Purchase of commodity for

deferred delivery in exchange of immediate full payment
Bay Salam
 Hadith says:
:‫عن ابن عباس رضي هللا عنهما قال‬
:‫ فقال‬،‫قدم النبي صلى هللا عليه وسلم المدينة وهم يسلفون في الثمار السنتين والثالث‬
.)‫ الى اجل معلوم‬،‫(اسلفوا في الثمار في كيل معلوم‬
Ibne Abbas (r.a) narrates: ‘The Prophet came to Medina and
the people used to do Salaf (Salam) of fruits to be delivered
within two to three years. The Prophet (s.a.w) instructed (to
them):
‘Buy fruits by paying their prices in advance on the conditions
that the fruits are to be delivered to you according to a fixed
specified measure and within a fixed specified period.’
(Sahih Bukhari, Pg 299, 1961)
Bay Salam – Definition

 Bay Salam is a sale contract whereby the seller supply

required crops / goods to the buyer at a future date in
exchange for an advanced on spot fully price paid by the
buyer
OR
 Bay Salam is sale of specific commodity, clearly known and
mutually agreed by seller and buyer, in terms of specification,
price, time and place of delivery, whether it exists or not at
the time of sale, but full payment must be done in advance
 Bay Salam – History
 After the prohibition of riba, the Rasulullah (S.A.W) allowed Bay
Salam subject to certain conditions to facilitate small farmers who
could not take usurious loans for agriculture. Therefore, it was
allowed for them to produce crops with the help of the price paid
by the buyer in advance
 The basic purpose of this sale was to meet the needs of small
farmers who needed money to produce crops and to feed their
family up to the time of their harvest
 Similarly, the traders of Arabia used to import and export goods.
They needed money to undertake this type of business. They
could not borrow from the usurers after the prohibition of riba. It
was, therefore, allowed for them that they sell the goods in
advance with certain conditions. After receiving their cash price,
they could easily undertake the aforesaid business
Bay Salam – History
 Abdullah bin Abi Aufa says:
‫ كنا نسلف نبيط اهل الشام في الحنطة والشعير والزيت‬:‫قال عبد هللا‬
‘We used to practice Salam with the peasants of Syria for
wheat, barley and olive oil…’
[Sahih Bukhari: The Book of Bai‘ Salam. vol 1. p 299, transmitted by Abdullah bin
Abi Mujalid (r.a)]
 Abdullah bin Abi Aufa says:
‫يب َو َّالت ْمر‬ َّ َّ َ ْ ْ ْ َ َ َّ َ ُ َّ َّ َّ ‫ا َّنا ُك َّنا ُن ْسل ُف َع َلى َع ْهد َر ُسول‬
ِ ‫اَّلل َصلى اَّلل َعل ْي ِه َو َسل َم َوا ِبي بكر َو ُع َم َر ِفي ال ِحنط ِة َوالش ِع ِير َوالزِب‬
ِ ِ ِ ِ ِ
‘During the time of Allah's Messenger (s.a.w), Abu Bakr and
'Umar, we used to practice Salam of wheat, barley, dried
grapes and dates…
[Sahih Bukhari: The Book of Bai‘ Salam. vol 1. p 299; transmitted by
Abdullah bin Abi Mujalid (r.a)]
Bay Salam in Quran
 Ibne Abbas (r.a) says:
:‫عن ابن َّعباس قال‬
َ‫ { َي َاا ُّي َها َّال ِذين‬:‫ قال هللا تعالى‬،‫ذن فيه‬ ّ ‫مسمى قد ا‬
َ ‫حله هللا في الك تاب وا‬ ّ ‫جل‬ ‫ا‬ ‫لى‬ ‫ا‬ ‫المضمون‬ ‫ف‬َ ‫ل‬َ ‫اشهد ا ّن َس‬
ِ ِ
ٌ ٌ ُ ْ َ ُ َ َ َ َْ ْ َُْ َ َ َ ُ َ
‫ حديث صحيح على‬:‫ وقال‬،]282 :‫ءامنوا ِاذا تداينتم ِبدين ِالى اجل مسمى فاك تبوه…} الية [البقرة‬
ُ ُ ًّ َ
44 :4())‫ كذا في ((نصب الراية‬.‫يخرجاه‬ ّ
ِ ‫ ولم‬،‫شرط الشيخين‬ ِ (
“O you who believe, when you transact a debt payable at a
specified time, put it in writing, and let a scribe write it
between you with fairness…” (Surah Al Baqarah: 282). Ibn
Abbas says “I take oath that the above verses were revealed
in the context of salaf (i.e., bai salam).”
Bay Salam in Hadith
 Hadith says:
:‫عن ابن عباس رضي هللا عنهما قال‬
:‫ فقال‬،‫قدم النبي صلى هللا عليه وسلم المدينة وهم يسلفون في الثمار السنتين والثالث‬
.)‫ الى اجل معلوم‬،‫(اسلفوا في الثمار في كيل معلوم‬
Ibne Abbas (r.a) narrates: ‘The Prophet came to Medina and
the people used to do Salaf (Salam) of fruits to be delivered
within two to three years. The Prophet (s.a.w) instructed (to
them):
‘Buy fruits by paying their prices in advance on the conditions
that the fruits are to be delivered to you according to a fixed
specified measure and within a fixed specified period.’
(Sahih Bukhari, Pg 299, 1961)
 Basic Conditions of Normal Sale

Since, Bay Salam is a Contract of Sale.

It is better to have glance over Basic Conditions of Normal Sale first

What are Basic Rules for Normal Sale?

 Basic Conditions for Normal Sale
 Selling item must exist at the time of sale

 Selling item must be in ownership of the seller

 Selling item must be in possession of seller: physically / constructively

 Selling item must be Halal thing
 Selling item must be a valuable thing
 Selling item must be specified and identified to the buyer
 Selling item must be a real asset; should not be a money / receivables
 Selling price must be known and agreed upon

 Sale must be instant: present / past tense; not in future tense / dates
 Sale must be absolute; not depend on future event / contingency
 Exclusive Conditions for Bay Salam

o Full price of purchased item must be paid in advance

o Specifications in terms of quality and quantity of commodity must be
Unambiguous
o There should not be any binding about crops / goods to a particular farm /
area
o Items that fall in the category of on spot payment in the light of Shari‘ah (like
barter of commodity by weight or to exchange of gold with gold etc) cannot
be dealt in Bay Salam

o The exact time and place of delivery of perchased crops / goods must be
known and agreed upon
Bay Salam – Benefits to Buyer & Seller

 Bay Salam is beneficial to the seller in a sense that he can

produce crops/goods in large number by receiving the full
price in advance

 Bay Salam is beneficial to the buyer in a way that he is

ensured the required crops/goods at the time of his need
and that the Bay Salam price is comparatively lower than
price of the required item in the market at the time of
delivery
QUESTIONS ARE WELCOME