If a Salam is made for a commodity, is it permissible to demand payment in cash?
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Q: I took a sum of money from one of my trading partners in a Salam and Tawarruq transaction, on the condition that I would return to him, at the end of the lunar year, a quantity of soap cartons agreed upon between us. He handed me the money by check, and wrote on it that it was in exchange for soap cartons. When the year came due, he came to collect from me, and I wanted to give him the agreed-upon soap, but he asked me
to give him cash. So I gave him cash checks written: "Not to be cashed except by the first beneficiary only." He cashed them himself at the bank and received the amount from the bank. He did not receive any soap from me, but rather cash checks that were cashed at the bank. Since the amount he received is approximately equal to his principal, he came to me after a period and asked me to give him cash so that he could obtain the value of the cartons in cash. I refused, on the grounds that he has no right to that, because after receiving the cash, he is entitled only to what remains of his principal. Since this phenomenon is widespread, I ask for clarification of the ruling in this matter, and whether it is permissible for this creditor to take more than his principal in this case? Please issue a ruling, may Allah reward you.
A: It is not permissible to take another money in exchange for the debt of a Salam, based on the saying of the Prophet (peace and blessings be upon him):Sunan Abi Dawud 3468Da'if (Al-Albani) narrated by Abu Dawud and Ibn Majah . However, if the item for which the Salam was made is unavailable, he may take only his principal, or wait until the item for which the Salam was made becomes available, and then take his right.
to give him cash. So I gave him cash checks written: "Not to be cashed except by the first beneficiary only." He cashed them himself at the bank and received the amount from the bank. He did not receive any soap from me, but rather cash checks that were cashed at the bank. Since the amount he received is approximately equal to his principal, he came to me after a period and asked me to give him cash so that he could obtain the value of the cartons in cash. I refused, on the grounds that he has no right to that, because after receiving the cash, he is entitled only to what remains of his principal. Since this phenomenon is widespread, I ask for clarification of the ruling in this matter, and whether it is permissible for this creditor to take more than his principal in this case? Please issue a ruling, may Allah reward you.
A: It is not permissible to take another money in exchange for the debt of a Salam, based on the saying of the Prophet (peace and blessings be upon him):
If anyone pays in advance he must not transfer it to someone else before he receives it.
من أسلم في شيء فلا يصرفه إلى غيره
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.