Bay’ al-Salam

This entry looks at bay’ al-salam (salam contract), a type of contract recognized by Islamic law, and analyzes current practices as they relate to its scope and definition. Salam, which literally means “to advance” in Arabic, is used in this type of contract to refer to a sale involving a price for specific goods to be delivered in the future on a specific date. In other words, in this specific type of contract, the parties agree to immediate payment and delivery in the future. As a result, the bargain is made and concluded ahead of time, and the products are delivered later.