The Validity of a Salam Contract

Question:
He moved on to a letter sent by the listener Abu 'Abd al-Rahman from al-Qasim, from Unaizah. He says: A man bought from me a described commodity in debt for the amount of one thousand riyals, which is called a salam contract. Then I bought that commodity from another commercial establishment for the amount of eight hundred riyals. After a month, I delivered it to the one with whom I had made the first contract. Is this transaction valid?

Answer:
Yes, if the conditions of salam are met; because the price is paid in the session of the contract, and when the term arrives, the item subject to salam is brought and delivered to its owner. The item subject to salam must be defined by its characteristics; it must be defined by the characteristics that distinguish it from others. If the conditions of salam are met, salam is one of the best transactions. Allah the Exalted said: In the exegesis, it is stated that the debt referred to here is the debt of salam, because it was known in the time of the Prophet (peace and blessings be upon him) and his Companions. If only people would act according to salam and be saved from riba (usury or interest), including riba financing for institutions and companies and the need of the needy. If only they would adopt salam, which is a legitimate and honest contract, and stay away from riba. Yes.