Bay al Salam

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Bay al Salam

In Islamic finance, a sale in which delivery is deferred until some stated date in the future. It is used for agricultural products and other fungibles. In order to comply with the sharia, a salam contract must specify the quality of the good to be delivered, and payment must be made at the time the contract is entered.
References in periodicals archive ?
Bai al salam--A sale contract for the future production or delivery of commodities, the bai al salam defines goods and fixes the date of delivery.