Friday 6 February 2015

The Bank Of Khyber_SALAM


Essential Features
 
  Subject to specific Shariah rules, following are the essential features for Salam sale transaction:

1.Goods specifications

In   a   Salam  sale,   the   goods  shall   be   defined  with   due   specifications   making   it clear   and understandable and their description shall not be left to be decided on some future date.
Goods quantity and quality both should be measurable or may be adequately estimated. It shall be conducted in only such goods or commodities, each unit of which have similar characteristics e.g. grains of a particular type etc. These types of commodities are called Zawat-ul-Amthal (homogenous goods).
 
2. Delivery of goods

The date of delivery of goods should be fixed and preferably the place of delivery should also be fixed.The commodity for Salam contract shall be expected to be in market and should further be expected to be in possession of the seller on the agreed date of delivery.
Any decline or increase in the market price at the time of delivery of goods might result in a loss or gain. Such loss or gain pertains to the buyer and seller both, the seller and the buyer, have no recourse on sale.

 
3. Payment

Payment against Salam purchase must be fully advanced at the time of commencement of Salam transaction. Salam transaction is irrevocable by either party. However, in case the goods do not match with the agreed description or if some defects are found such transaction may be reversed.In case of identification of inferior quality of goods at the time of delivery, price may be changed/agreed with mutual consent.

4.Cancellation of Salam  Contract.
 
It is permissible, when both parties agree due to any practical impediment, to cancel the entire Salam contract in return for repayment in full of the amount of the purchase price advanced earlier at the time of commencement of contract. Partial cancellation, that is, cancellation of the delivery of part of goods, in return for repayment of a corresponding part of the purchase price, is also permissible. However, the contract cannot be cancelled unilaterally.

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