The Ruling on Salam Sales and the Ruling on Selling What One Does Not Own

Question:
This person is asking about salam sales, and what is the ruling on selling what a person does not own?

Answer:
A salam sale is a forward sale paid in advance, which is paying the price in advance and deferring the delivery of the item, subject to the known conditions of salam. Salam is permissible and a good transaction, and the Messenger (peace and blessings be upon him) approved it. It involves paying the price in advance and deferring the delivery of the item. The price must be paid in the session of the contract. When the due date arrives, the one to whom the sale was made brings the item—whether it is food or whatever else was agreed upon—and presents it and delivers it to the buyer. This is salam. The second issue is selling what one does not own. Selling what one does not own is not permissible; because of the saying of the Messenger (peace and blessings be upon him) Yes.