Is a forward contract (Salaf) valid if it is due immediately (Hāl)?

Chapter on Guaranteed Salaf (Advance Payment) for a Specified Term

Al-Mughni

Book of Sales

Book 12 · Issue 1 · Bab 6

Open in Qurani

Primary text

The forward contract (Salaf) requires a known deferred term (Ajal Ma'lum) for its validity. Imam Ahmad (in the narration of Al-Marwadhi), Abu Hanifa, Malik, and Al-Awza'i hold that it is not valid unless a deferred term is stipulated. The evidence for this position is the Prophet's saying: "Whoever enters into a forward contract concerning something, let him stipulate it in a known measure, or a known weight, for a known term." This command necessitates obligation. Furthermore, stipulating these conditions, including the term, is meant to define the parameters of the Salaf and prevent it without them, similar to how the absence of known measure or weight invalidates it. Moreover, the Salaf was permitted as a concession for ease (Rifq), and ease is only achieved through deferment; thus, the absence of deferment nullifies the ease and invalidates the contract, akin to written documents.

Supporting text

Al-Shafi'i, Abu Thawr, and Ibn al-Mundhir permit an immediate forward contract. They argue that a contract valid when deferred must also be valid when immediate, similar to sales of existing commodities. They also contend that immediacy removes greater uncertainty (Gharar). If one sells an item for which a Salaf is permissible immediately against a liability, the contract is valid, possessing the meaning of Salaf even if the wording differs regarding immediacy.