If a merchant purchases goods from a factory based on a model and then pays the money in installments, is this considered a salam?
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The questioner : Some merchants purchase goods from a factory owner, and they agree on them according to a model. Is this sale considered a salam? And if it is a salam, the merchant says, "I cannot pay the full amount; I will pay it in installments to secure my right." What is your opinion, O Shaykh?
The Shaykh : We say that this is not a salam; this is called istisna' (manufacturing contract) for goods. It is permissible to agree with the factory owner, whether a carpenter, blacksmith, or others, on a specific item described and defined by its characteristics, and it is not delivered until it is completed, whether the price is paid in full or in part. Yes.
The Shaykh : We say that this is not a salam; this is called istisna' (manufacturing contract) for goods. It is permissible to agree with the factory owner, whether a carpenter, blacksmith, or others, on a specific item described and defined by its characteristics, and it is not delivered until it is completed, whether the price is paid in full or in part. Yes.
