What is the legal ruling on Bay' as-Salaf (forward sale or advance payment)?
Chapter on Guaranteed Salaf (Advance Payment) for a Specified Term
Al-Mughni
Book of Sales
Primary text
Forward sale (Salaf or Salam) is a type of sale involving an immediate price for a described commodity due at a specified future date. It is permissible based on the Book of Allah, the Sunnah, and scholarly consensus (Ijma'). Regarding the Quran, the permissibility is supported by the verse concerning debt written down for a specified term (Quran 2:282), which Ibn Abbas stated explicitly permits the guaranteed forward sale (Salaf) to a specified time. As for the Sunnah, the Prophet, peace be upon him, permitted it in Medina when he found people engaging in forward sales of fruits for two or three years, stipulating that it must be for a known measure, known weight, and known term. Furthermore, the Companions, including Ibn Abi Aufa, engaged in forward sales of wheat, barley, and raisins to traders from Sham without inquiring about their possession of the underlying commodity.
Supporting text
Scholars agree on its permissibility because the sold commodity (the object of the contract) can legally be established as a liability (*dhimmah*), similar to the price. The permissibility is also established due to the necessity felt by cultivators, fruit growers, and traders who require funds for maintenance and completion of their ventures before harvest.