The nature of a forward sale (salam) and how it is conducted. Is it permissible to leave the price and quantity unspecified?
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The questioner : Shaykh, may Allah reward you, we have a type of financial transaction that resembles a forward sale (salam). The merchant or owner of the capital gives the farmer a sum, for example one thousand riyals, and tells him, "When you harvest the wheat or rice, give me rice for it." However, when he comes to buy from him, he buys at the price of the day of harvest. This is because if he bought at the price of the day of payment, it would be an injustice to the owner of the capital, as the commodity would be very expensive at that time. When the harvest arrives and the commodity becomes common, its price drops. Usually, they do not specify how much this thousand buys; they do not specify the exact quantity to be purchased with it. Is this correct?
The Shaykh : Yes, this is a forward sale (salam). The Prophet (peace and blessings be upon him) said:Sahih al-Bukhari 2240 Therefore, the term must be specified, and the measure, weight, type, and description—whether poor or good—must be specified. It is also necessary that the price be estimated at the time of the contract.
The questioner : At the price of the time of the contract.
The Shaykh : Yes, at its price, or more, or less. They are free to agree. It is permissible at its price, or less, or more. The important thing is that they agree on the value at that time.
The questioner : The only deviation here is the lack of agreement on the measure.
The Shaykh : No, on the amount of the value.
The questioner : How?
The Shaykh : They must estimate the value.
The questioner : At the time of paying the money.
The Shaykh : At the time of paying the money, they estimate the value as they wish. Even if we assume that the sa' (a dry measure of about 3 kg) is worth ten, and they estimate it at eleven, or twelve, or thirteen, or six, or seven, they are free to do so.
The questioner : This is usually the case, Shaykh, may Allah reward you. The merchant says, "I will not buy at today's price, certainly."
The Shaykh : How much will you buy it for?
The questioner : He wants to buy it at the harvest price.
The Shaykh : All right, the harvest price is unknown.
The questioner : It is unknown and changes from day to day.
The Shaykh : It is not permissible.
The questioner : It is not permissible.
The Shaykh : It is not permissible.
The questioner : May Allah bless you.
The Shaykh : Yes, if they estimate the price, the merchant takes precautions for himself. He raises it slightly, and that is the end of it.
The questioner : Your Eminence, the Shaykh
The Shaykh : He lowers it slightly, because you say that it rises at the time of the contract. It may rise, so he says, instead of the sa' (a dry measure of about 3 kg) being ten, he takes it from you for eight. Yes.
The questioner : ...
The Shaykh : But it must also be known that cash is not like deferred payment. It must be less than the regular price. Yes.
The questioner : I say, may you allow us to ask, if Allah wills, I will see if the brothers have finished.
The Shaykh : Yes, this is a forward sale (salam). The Prophet (peace and blessings be upon him) said:
Whoever pays in advance the price of a thing to be delivered later should pay it for a specified measure at specified weight for a specified period.
من أسلم في شيء فليسلم في كيل معلوم ووزن معلوم إلى أجل معلومThe questioner : At the price of the time of the contract.
The Shaykh : Yes, at its price, or more, or less. They are free to agree. It is permissible at its price, or less, or more. The important thing is that they agree on the value at that time.
The questioner : The only deviation here is the lack of agreement on the measure.
The Shaykh : No, on the amount of the value.
The questioner : How?
The Shaykh : They must estimate the value.
The questioner : At the time of paying the money.
The Shaykh : At the time of paying the money, they estimate the value as they wish. Even if we assume that the sa' (a dry measure of about 3 kg) is worth ten, and they estimate it at eleven, or twelve, or thirteen, or six, or seven, they are free to do so.
The questioner : This is usually the case, Shaykh, may Allah reward you. The merchant says, "I will not buy at today's price, certainly."
The Shaykh : How much will you buy it for?
The questioner : He wants to buy it at the harvest price.
The Shaykh : All right, the harvest price is unknown.
The questioner : It is unknown and changes from day to day.
The Shaykh : It is not permissible.
The questioner : It is not permissible.
The Shaykh : It is not permissible.
The questioner : May Allah bless you.
The Shaykh : Yes, if they estimate the price, the merchant takes precautions for himself. He raises it slightly, and that is the end of it.
The questioner : Your Eminence, the Shaykh
The Shaykh : He lowers it slightly, because you say that it rises at the time of the contract. It may rise, so he says, instead of the sa' (a dry measure of about 3 kg) being ten, he takes it from you for eight. Yes.
The questioner : ...
The Shaykh : But it must also be known that cash is not like deferred payment. It must be less than the regular price. Yes.
The questioner : I say, may you allow us to ask, if Allah wills, I will see if the brothers have finished.