As Salam Transaction In Islam

Oleh Unknown

Minggu, 08 Februari 2015

As Salam Transaction In Islam

All praises be to Allah The Exalted, The bestower of abundance graces upon us all. Prayers and peace may always be granted upon our Prophet, Muhammad, his family, and all of his devoted companions. Amen. Among the proofs of the perfection of Islam as a religion, is the legal permission to trade by practicing salam, a contract of order of an item, with agreed criteria, and cash payment at the time of contract signing.
It is based on the reason that by such contract, both parties involved already get profits without cheating each other or by a mere luck (gharar). The benefits shares by the consumers are:
– A guarantee to get the item that fits his or her needs, at the time he or she wants.
– A lower price compared to purchasing at the time he or she really need it.
Whereas the seller acquire somewhat equal advantages to the customers, among them are:
– The seller can get some capital to start his business in legal ways, thus he can run and improve his business without having to pay any interests. Before the due time, the seller is allowed to use the cash payment to run his business and gain as much profits as he can without any obligations to fulfilled.
– The seller will have some free time to accomplish the orders, since usually there is a large time gap between the transaction and the delivery of the orders.
Salam practice is a right solution in Islam to avoid usury. And this probably becomes one of the wisdom of the mentioning of salam after the prohibition of usury in Qur’an:
Allah The Exalted decreed in His Holy Book of Qur’an:

آمَنُواْ إِذَا تَدَايَنتُم بِدَيْنٍ إِلَى أَجَلٍ مُّسَمًّى فَاكْتُبُوهُ

“O you who have believed, when you contract a debt for a specified term, write it down.” (Al Baqara: 282)
From the authority of Ibn Abbas -may Allah be pleased with him- , he said:

أشهد أن السلف المضمون إلى أجل مسمى قد أحله الله في الكتاب وأذن فيه، قال الله عز وجل يا أيها الذين آمنوا إذا تداينتم بدين إلى أجل مسمى فاكتبوه الآية. رواه الشافعي والطبري عبد الرزاق وابن أبي شيبة والحاكم والبيهقي وصححه الألباني

“I testify that the As Salaf transaction which guaranteed until it’s due time is legal and permitted by Allah in Qur’an. Allah The Exalted decreed (which means), ‘O you who have believed, when you contract a debt for a specified term, write it down.’ (Al Baqara: 282) (Collected by Ash Shafi’i, Ath Thobary, Abdurrazaq, Ibn Abi Syaiba, Al Hakim, and Al Baihaqy. This hadeeth was graded saheeh by Sheikh Al Abanee)
Among indications that support that statement of Ibn Abbas -may Allah be pleased with him, is the last part of the same verse, which stated that,

وَلاَ تَسْأَمُوْاْ أَن تَكْتُبُوْهُ صَغِيرًا أَو كَبِيرًا إِلَى أَجَلِهِ ذَلِكُمْ أَقْسَطُ عِندَ اللّهِ وَأَقْومُ لِلشَّهَادَةِ وَأَدْنَى أَلاَّ تَرْتَابُواْ إِلاَّ أَن تَكُونَ تِجَارَةً حَاضِرَةً تُدِيرُونَهَا بَيْنَكُمْ فَلَيْسَ عَلَيْكُمْ جُنَاحٌ أَلاَّ تَكْتُبُوهَا

“And do not be (too) weary to write it, whether it is small or large, for it’s (specified ) time. That is more just in the sight of Allah and stronger as evidence and more likely to prevent doubt between you, except when it is immediate transaction which you conduct between yourselves, for (then) there is no blame upon you if you do not write it.” (Al Baqara: 282)
Hence, the above verse is an argumentation to legalize practice of Salam. Among other argumentations of it is a hadeeth below,

عن ابن عَبَّاسٍ رضي الله عنهما قال: قَدِمَ النبي الْمَدِينَةَ وَهُمْ يُسْلِفُونَ بِالتَّمْرِ السَّنَتَيْنِ وَالثَّلَاثَ. فقال: (من أَسْلَفَ في شَيْءٍ فَفِي كَيْلٍ مَعْلُومٍ وَوَزْنٍ مَعْلُومٍ إلى أَجَلٍ مَعْلُومٍ . متفق عليه

Narrated Ibn Abbas -may Allah be pleased with them both (he and his father), he said, “The Prophet Shallallaahu ‘alayhe wa Sallam came to Al Madina, and the people used to pay in advance the price of dates to be delivered within two or three years. He said to them, ‘Whoever pays in advance the price of a thing to be delivered later, should pay it for a known specified measure, at known specified weight, for a known specified time.'” (Muttafaqun ‘alayhe)
Based on argumentations above and others, the scholars had agreed upon the legal status of salam. However, as understood from. the hadeeth, it has several requirements to be followed, in order to achieve the aim and wisdom beneath it, and to avoid itself from usury and gharar. (lucky based-transaction).

First: Payment must be In Cash Form
As concluded from it’s mentioning, which is As Salam, with the meaning of delivery, or as Salaf, which means put something in advance, the scholars agreed that the payment of it must be done in advance, or cash, without anything left as debt or postponed.
But if the payment is postponed, as commonly occurred, for example, someone ordered a thing with a year term, and when he paid, he used a cheque or guarantee, that could not be used but on several months ahead, this kind of contract is illegal in Shari’a.
The reason is taken from this hadeeth:

عن بن عمر أن النبي نهى عن بيع الكالئ بالكالئ. رواه الدارقطني والحاكم والبيهقي وضعَّفه غير واحد من أهل العلم، منهم الشافعي وأحمد وأقرهما الألباني

“From the authority of Ibn Umar -may Allah be pleased with them both (he and his father), The Prophet Shallallaahu’alayhe wa Sallam forbade transaction between credit and credit.” (Narrated by Ad Daruquthni, Al Hakim, and Al Baihaqy, but it is graded weak by some scholars, such as Imam Ash Shafi’i, Ahmad, and agreed by Al Albanee)”
However, plenty of scholars claimed that the agreement of the scholars was to forbid the exchange of credit and credit.
Imam Ahmad Ibn Hanbal said: “There is no single, valid hadeeth about this (the prohibition of selling credit by credita-translator). but the scholars had agreed that is not allowed to trade credit by credit.”
Just the same as being mentioned by Ibn Munzir: (1)
Ibn Qayyim said, “Allah required in Salam, that the payment must be in cash; because postponement will make both parties in useless debt. Thus, this kind of contract is dubbed by as Salam; since there is a cash payment in advance. If the payment is postponed, it basically similar to exchange between credit and credit, and possesses high risk, and included in lucky based transaction.”

Second: It is applied upon Things that have distinctive Criteria
As widely known that the contract of salam is an order of specific thing with an in advance payment, it is a must for the ordered goods be the goods that could be specified by mentioning it’s criteria. These criteria is used to choose the goods desired by both parties, as if it is already there before them. Thus, at the due time, it is hoped that there will be no clashes upon the goods.
This requirement is a direct application of validity requirement of trading contract: “An item being trade is known for both sides.”
However, things with uncertain criteria, such as animal skin, vegetables, and others, should not be sold by using Salam method,since it is a form of gharar. And gharar is clearly forbidden, as in this hadeeth below:

أنَّ النبي نهى عن بيع الغرر. رواه مسلم

“The Prophet Shallallaahu’alayhe wa Sallam forbids gharar type of trading.” (Collected by Muslim)
Third: The Setting of Criteria Occurred at The time of Contract
From explanations above, it is understood that in salam, the seller and the consumer are obliged to make a deal upon the ordered things’ criteria, such as it’ kind, color, size, amount, and other criteria which is desired and could affect it’s price. For example: If A orders sone rice to B, he must specify the type of rice he wants, the harvest time, it’s quality, it’s planting area, and the amount he desires.
Each of these criteria affects the price, since it is commonly known that the price of rice differs due to it’s type, such as the rice of Rojo Lele is more expensive than IR. The price of 5-years time harvest usually cheaper than current year harvest, and grade 1 rice is more expensive than grade 2, and rice from Cianjur is more expensive than rice from other areas.
While the amount of thing is clearly affecting the price, since the price of a ton rice must be more expensive than 100 kg of it, of the same type.
The Messenger of Allah Shallallaahu’alayhe wa Sallam said,

من أَسْلَفَ في شَيْءٍ فَفِي كَيْلٍ مَعْلُومٍ وَوَزْنٍ مَعْلُومٍ إلى أَجَلٍ مَعْلُومٍ . متفق عليه

“Whoever pays in advance the price of a thing to be delivered later should pay it for a known specified measure, at known specified weight, for a known specified time-period.” (Muttafaqun ‘alayhe)
After the criteria being agreed upon, the possibilities probably occurred at the due time are:
A. First possibility: The seller is able to deliver an item which fits the desired criteria, and the consumer must accept it, and he is not rightful to cancel the contract.
The Messenger of Allah Shallallaahu’alayhe wa Sallam said,

المسلمون على شروطهم. رواه أحمد والبيهقي وغيرهما وصححه الألباني

“Muslims are obliged to fulfill their requirements.” (Collected by Ahmad, al Baihaqi, and the others. It is graded sahih by Al Albanee)
B. Second possibility: The seller can only fulfill a lower quality item than required in criteria, hence the customer deserves to cancel his order and take back the payment.
As it is also legal for him to postpone or to make a new deal with the seller, whether it is about the criteria, the price or other things concerning the contract, or to accept the item although the quality is lower than he desired. Whatever steps taken by the customer, it is allowed for him, but he is advised to forgive the mistakes by accepting the item brought by the seller, or by giving the seller more time to accomplish his task.
The reason is a hadeeth from The Apostle of Allah Shallallaahu ‘alayhe wa Sallam,

رحم الله رجلا سمحا إذا باع وإذا اشترى وإذا اقتضى. رواه البخاري

From Jabir Ibn Abdillah- may Allah be pleased with them both- The Messenger of Allah Shallallaahu’alayhe wa Sallam said, “May Allah bestow graces upon a person who always at ease when selling, buying, and claiming.” (Collected by Bukharee)
Beside that, the customer should be able to maintain his dignity, perform noble manners, not engulfed in abominated rage. The Messenger of Allah Shallallaahu’alayhe wa Sallam said,

من طلب حقا فليطلبه في عفاف واف أو غير واف. رواه الترمذي وابن ماجه وابن حبان والحاكم

“Whoever claims his right, should be claiming with dignity, whether he get it or not.” (Collected by A Tirmidhi, Ibn Maja, Ibn Hibban, and Al Hakim.)
C. Third Possibility: The seller brings a better quality item than the ordered, without asking for additional payment. In this case, the scholars have argued whether it is obliged for the customer to accept it or not?
Some of them stated that the customer must accept the item, and he is not rightful to cancel his order. They argued that the seller has accomplished the order without any minuses in criteria, moreover he has done good to the customer by giving some added value without asking for additional fee.
But the others stated that the customer deserves to reject the item brought by the seller, if he presumes that the seller will hurt him at the future by mentioning it to other people. But if he is sure that the seller won’t do such flaw, then he must accept the item, since the seller has done good and anyone tries to do good shall not be humiliated or troubled:

مَا عَلَى الْمُحْسِنِينَ مِن سَبِيلٍ التوبة 91

“There is not upon the doer of goods any cause (for blame).” (Qs. At Tawbah: 91)
The second opinion is the stronger and more moderate one, since it contains all arguments and reasons concerning this matter, and Allah knows best.
Fourth: Determination of Time to Deliver the Orders
It is something common in the contract of salam, that both parties are obliged to make an agreement upon specific time for the delivery. And the time being agreed -according to majority of the scholars- is such length of time that affects the price of the orders.
This is based on the saying of Allah’s Apostle Shallallaahu’alayhe wa Sallam:

إلى أَجَلٍ مَعْلُومٍ . متفق عليه

“…for a known specified time-period.” (Muttafaqun ‘alayhe)
For example: If A orders a ton of cisedani-type rice from B, which is the harvest of current year and no. 1 quality, both of them must be agree upon the time of delivery, and time must be affecting it’s price, for example within 2 or 3 months. But if both parties agree upon a time duration which not affecting the price, for example 1 or 2 weeks, or less, or even they do not use a time period, then the practice is illegal, according to majority of the scholars.
The First Opinion: This is the opinion of majority of the scholars, and their basis derived from the text of the hadeeth:

إلى أَجَلٍ مَعْلُومٍ . متفق عليه

“…for a known specified time-period.” (Muttafaqun ‘alayhe)
In this hadeeth, The Prophet Shallallaahu’alayhe wa Sallam required a specific time in salam to be agreed by both sides.
They also argued using the aim of salam, which is to customer to get a lower price goods, and to seller to get profits from business funded by the payment of the customer, Thus, if the time specified does not meet the aim of the salam itself, then it has no use at all.
The Second Opinion: The Scholars of madzhab Shafi’i disagreed with the majority of the scholars. They stated that the time specification is Salam is not a fixed criteria, thus it is rightful for the customer to order goods without a time duration which could affect the price, or even without any time being specified.
They reasoned that if the order of goods, which fulfillment is done after several time, is legal, whereas the seller may be or maybe not successful in completing the orders, then an order which is directly accomplished after the contract is more appropriate to be acknowledged.
If we examine both argumentations above, we can see that the second opinion is the stronger one, based on several explanations below:

The basic principle of all trading is legal and permitted, unless the ones forbidden by Allah and His Messenger. While in this case, there is no single prohibition that explicitly ban any contract of salam without specific time to complete the order.
Based on the above reason, several scholars stated that every trading contract which could be interpreted by a correct interpretation in Sharia, that suppose to be chosen by mufti.
About the hadeeth of Majority of the scholars, it is not strictly stated about the requirement of time duration, since it could be interpreted as:” If you order until a specific time point, then it should be known/agreed by both sides.”

After the specific time is agreed by both sides, there are 3 possibilities that could be happened at the due time:
First possibility: The sellers succeed to bring the order at the specific time, and in this condition, the customer must accept the item.
Second possibility: The seller unable to deliver the orders. Thus, the customer is rightful to draw back his payment or renew the deal.
Third possibility: The seller delivers the order before the due time. In this condition, if the customer do not have any reason to reject the item he or she has ordered, then he or she must accept it. This is because the seller has done kindness, by advancing the order, and a good doer shall not be blamed.

مَا عَلَى الْمُحْسِنِينَ مِن سَبِيلٍ التوبة 91

“There is not upon the doer of goods any cause (for blame)” (Qs. At Tawbah: 91)
But if the customer have a right aim to reject the order but at the due time, then he or she is allowed to reject it, based on the hadeeth below:

لا ضَرَرَ ولا ضِرَار. رواه احمد وابن ماجة وحسنه الألباني

“There shall be no one afflict dangers or the return of danger by a more threatening than the deed.” (Collected by Ahmad, Ibn Maja, and graded hasan by Al Albanee)
For example, if the ordered items are fruits, which are easily rotten, whereas the seller wants to sell them at the due time, because the price will be higher at that time, or heavily demanded, then he is rightful to reject his order being delivered out of the the specified time. Or, the ordered items need lots of space, whereas his warehouse is full other than the specified time, then it is legal for him to reject the delivered orders until the specified time.
Fifth: The Ordered Items are available in the market at the due time
When someone signed a contract of salam, both parties must think about the availability of the items at the due time. This requirement meant to hinder the contract of salam from forgeries and gharar, which are forbidden in Islam.
For example, If someone orders seasonal fruit, such as durian and mangoes, with a contract statement of: “The goods must be delivered at time other that the season of both fruits”, then it is invalid, since it contains gharar, and troubling another involving party. Whereas the basic principle of trading in Islam is “eases”, as mentioned in this hadeeth below:

: عن جابر بن عبد الله رضي الله عنهما أن رسول الله

قال: رحم الله رجلا سمحا إذا باع وإذا اشترى وإذا اقتضى. رواه البخاري

From Jabir Ibn Abdillah -may Allah be pleased with them both- The Messenger of Allah Shallallaahu’alayhe wa Sallam said: “May Allah keep bestowing His grace upon someone who make other people at ease when selling, purchasing, and claiming.” (Collected by Bukharee)
Moreover, negligence over availability of the ordered goods at the due time will raise clashes and fights. And every kind of trading which can lead to clashes and fights is forbidden.
Thus, The Messenger of Allah Shallallaahu ‘alayhe wa Sallam stated:

: عن أبي هريرة

قال: قال رسول الله : (لا تحاسدوا ولا تناجشوا ولا تباغضوا ولا تدابروا ولا يبع بعضكم على بيع بعض وكونوا عباد الله إخوانا، المسلم أخو المسلم لا يظلمه ولا يخذله ولا يحقره) متفق عليه

“From the authority of Abu Huraira -may Allah be pleased with him, he said: The Apostle of Allah- Shallallaahi’alayhe wa Sallam said: ‘Don’t you be envious to each other, don’t you raise your bargain (without any intention to buy it), don’t you hate each other, don’t you make bad plan towards each other, do not part of you step over his brother’s bargain, dan keep the brotherhood among you, the slave of Allah. A muslim is a brother for other muslim, he will not transgress his brother, he will not let him violated by others, and he will not insult him.’” (Muttafaqun ‘alayhe)
Sixth: The ordered goods is an Item which availability is guaranteed by businessman
Which means, the ordered goods or item shall only be specified in certain criteria, and the supply of stock shall be leave totally in the hand of the businessman, thus he will free in managing the stock. The businessman have rights to prepare the goods from his own field or stocks, or buy them from another party.
This requirement intends to avoid the contract from gharar, since it is possible for a businessman to be unable to deliver the goods from his own field in time, due to some unwanted problems.
For example: If a trader orders unhulled paddy (which is separated from it’s stalk) to a farmer with some agreed criteria, he shall not limit the authority of the farmer, by saying that: the paddy must be derived from the farmer’s own field. Instead, the farmer must be given freedom to prepare the stock, so that he can deliver the paddy in time, whether from his field or other people’s field. Another example: There is a trader who have stock of 100 packs of cement, weighted 50 kg each, from a certain label. When you order 50 packs of cement with the same label, weighted 50 kg each, for 4 months from now, you should not make a contract of salam with him, that mention that the ones delivered 4 months later are from the now-100 packs. Because it is possible that the current available cement will be damaged or stolen at the due time.
This requirement is the one proposed by majority of the scholars, while the rest of them stated that this requirement is of no need, due to:
Basic ruling for every trading is legal, but the ones forbidden by clear and valid argumentations.
Based on that basic ruling, some scholars said that as long as there is a correct interpretation of a transaction, then it should be the basic of measurement.
Hence, this second group of scholars states that the contract of order of available goods which are limited in numbers, essentially not a contract of salam, but a simple trading contract, but it is joined by another contract, which is deposition of goods over an agreed period of time.
This means, on the example of cement buying above, the one who order it actually buy 50 packs of cement at the time of contract, and simultaneously deposit his goods to the store owner for 4 months.
This matter is included in a famous principle of Islamic Jurisprudence:

هل العبرة بصيغ العقود أو بمعانيها

“Is it the text of contract, or it’s meaning, that shall be the orientation?”
If this is the case, then the stronger opinion is the second one.
Seventh: It is not required for the trader/seller to be the owner of the object of salam
Probably some people think that the seller who is considered legal to practice salam is the one who possess the object of salam itself. But this is not true. That is why during the era of The Prophet Shallallaahu’alayhe wa Sallam, his companions were never bother to asked to the seller of whom they order from, whether they have the ordered goods or not. Muhammad Ibn Abil Mujalid told:

مُحَمَّدُ بْنُ أَبِى الْمُجَالِدِ قَالَ بَعَثَنِى عَبْدُ اللَّهِ بْنُ شَدَّادٍ وَ أَبُو بُرْدَةَ إِلَى عَبْدِ اللَّهِ بْنِ أَبِى أَوْفَى – رضى الله عنهما – فَقَالاَ سَلْهُ هَلْ كَانَ أَصْحَابُ
النَّبِىِّ – صلى الله عليه وسلم – فِى عَهْدِ النَّبِىِّ – صلى الله عليه وسلم – يُسْلِفُونَ فِى الْحِنْطَةِ قَالَ عَبْدُ اللَّهِ كُنَّا نُسْلِفُ نَبِيطَ أَهْلِ الشَّأْمِ فِى الْحِنْطَةِ ، وَالشَّعِيرِ ، وَالزَّيْتِ ، فِى كَيْلٍ مَعْلُومٍ ، إِلَى أَجَلٍ مَعْلُومٍ . قُلْتُ إِلَى مَنْ كَانَ أَصْلُهُ عِنْدَهُ قَالَ مَا كُنَّا نَسْأَلُهُمْ عَنْ ذَلِكَ

“One day Abdullah bin Shaddad and Abu Burda sent me to Abdullah bin Abi Aufa -may Allah be pleased with him- and told me to ask Abdullah whether the people in the lifetime of the Prophet Shallallaahu ‘alayhe wa Sallam used to pay in advance for wheat (to be delivered later). Abdullah replied, ‘We used to pay in advance to the peasants of Sham for wheat, barley and olive oil for a known specified measure to be delivered in a known specified time-period.’ I asked (him), ‘Was the price paid (in advance) to those who had the things to be delivered later?’ Abdullah bin Aufa replied, ‘We did not use to ask them about that.'” (Collected by Bukharee)
Based on the practice of salam performed by the companions of the Prophet, it is legal for anyone to perform the contract with any seller, although they are not the manufacturer of craftsman or farmer of the ordered goods.
These are the global requirements for salam, and the stronger ones from various requirements mentioned in diverse books of jurisprudence, based on my limited knowledge. Here I cite several fatwas from Standing Committee for Scientific Research and Fatwa, Kingdom of Saudi Arabia, concerning numerous forms of salam transaction:
Question:
If there is a person who is in a need, and he borrows some money from another person with such contract: The debtor will pay his debt after some time with several sho’ (A type of measurement) of wheat or dates. And this contract is signed before the wheat and dates are ripe, ready to be harvested?
Answer:
If the debtor promises to settle his debt with an amount of sho’ which has been agreed between them, then it is type of salam. And salam is a legal transaction with several requirements:
First: The objects are able to be specified by certain criteria.
Second: Both parties agreed over criteria that can affect the proce of the goods.
Third: The amount of goods shall be in certain number, whether by using measurement over measured commodities, or by weighing over weighed commodities, or by meters length by commodities that have length to be measured.
Fourth: The delivery of orders should be done after the agreed period of time.
Fifth: The commodities ordered shall be widely available at the due time.
Sixth: The payment shall be settled at the time of contract being signed.
Seventh: The ordered commodities are the ones availability are guaranteed by the seller, and not the available stock.
The foundation to legalize salam transaction is a verse from Qur’an as follows:

يَا أَيُّهَا الَّذِينَ آمَنُواْ إِذَا تَدَايَنتُم بِدَيْنٍ إِلَى أَجَلٍ مُّسَمًّى فَاكْتُبُوهُ

“O you who have believed, when you contract a debt for a specified term, write it down.” (Al Baqara: 282)
From the authority of Ibn Abbas -may Allah be pleased with him- , he said:
“I testify that the transaction of salaf (salam) which is guaranteed until it’s due time is legal and permitted by Allah in Al Qur’an, then he read the verse.” (Narrated by Sa’id Ibn Manshur-translator)
And among the argumentations from Sunnah is a hadeeth narrated by Ibn ‘Abbas -may Allah be pleased with them both-:
Allah’s Messenger صلى الله عليه وسلم came to Al-Madina and the people used to pay in advance the price of fruits to be delivered within one or two years. The Prophet صلى الله عليه وسلم said, “Whoever pays money in advance for dates (to be delivered later) should pay it for known specified weight and measure (of the dates).” (Muttafaqun ‘alayhe)
And the guidance be (the right of) Allah alone, may He bestows prayers and peace upon Prophet Muhammad, his family, and his devoted companions.
B. Question:
Someone lend some money to a honey farmer with such contract: When the harvest time come, the lender deserve to take any honey he wants which price equals the money he has lent. But sometimes the harvest time come while the farmer does not have honey that suits the creditor’s criteria, or he may have sold his bees, or they just leave. What is the ruling for such credit? Please give us guidance, may Allah rewards your kindness.
Answer:
The transaction mentioned in the question is one form of salam transaction, but it deviates from the right ways, since it differs from the requirement of the contract of salam. Because salam is a contract of trading over goods with certain criteria, and the availability is guaranteed by the seller with requirements below:
Criteria specification, started from the amount of measurement or weight, or by meter length, and the type of goods, including all criteria that affect the price.
A strong presumption over the seller’s capability to provide the goods in time.
Agreement of due time.
Full payment in advance, at the time of contract being signed.
The case mentioned in the question is a transaction over a thing which availability caon not be guaranteed by the seller, since he required honey only from the farmer’s field. They also do not agree upon the amount of the ordered honey in kilograms, and a specific period of time.
This kind of transaction resembles transaction done by the dwellers of Medina who took ordered dates from their own harvest. When The Prophet Shallallaahu’alayhe wa Sallam arrived in Medina, he forbade such practice with the reason of gharar (lucky based). Because it was possible that the plantation was afflicted by calamity, and it did not yield anything. Ibn Hajar in his book, (Fath al Baari 4/433) said:
“Ibn Munzir excerpted an agreement of majority of the scholars which forbids salam transaction limited to certain fields, because such practice contains gharar.” As mentioned by Ibn Abbas- may Allah be pleased with them both:

قَدِمَ النبي الْمَدِينَةَ وَهُمْ يُسْلِفُونَ بِالتَّمَارِ السَّنَتَيْنِ وَالثَّلاَثَ. فقال: من أَسْلَفَ في شَيْءٍ فَفِي كَيْلٍ مَعْلُومٍ وَوَزْنٍ مَعْلُومٍ إلى أَجَلٍ مَعْلُومٍ . متفق عليه

Allah’s Messenger Shallallaahi’alayhe wa Sallam came to Al-Madina and the people used to pay in advance the price of fruits to be delivered within one or two years. The Prophet Shallallaahi’alayhe wa Sallam said, “Whoever pays money in advance for dates (to be delivered later) should pay it for known specified weight and measure (of the dates).”
Based on that hadeeth, the transaction mentioned in the question is invalid, because it doe not fulfill some of the requirements for salam.
Hence, the transaction is incomplete, and the farmer is obliged to return the money to the lender. And the guidance be (the right of) Allah alone, may He bestows prayers and peace upon Prophet Muhammad, his family, and his devoted companions.
C. Question:
In Sudan, there is a man who used to take advantage from the hardship of economy which afflicted muslim in that area, by purchasing their harvests long before the harvest time, with a very low price. And when the harvest time come, he receives all of their harvest. What is the ruling of this practice in sharia?
Answer:
If the man buys from the farmer or other people their harvest, with requirements that suit the practice of salam, that is by specifying harvest’s criteria, in measurement or weight that has been agreed, and he fulfill the payment in advance at the time of transaction, without limiting the harvests to a specific field, then this practice is legal, based on a hadeeth from The Prophet Shallallaahu’alayhe wa Sallam:

من أسلف في شيء فليسلف في كيل معلوم ووزن معلوم إلى اجل معلوم. متفق عليه

“Whoever pays money in advance for dates (to be delivered later) should pay it for known specified weight and measure (of the dates).” (Muttafaqun ‘alayhe)
But if he bought the harvest of certain field before the plants ripened and ready to be harvested, then it is forbidden, due to The Prophet Shallallaahu’alayhe wa Sallam’s prohibition to sell fruits until they are ripe, and beans until they are harden. Imam Muslim narrated in his book (Sahih Muslim) from Ibn Umar -may Allah be pleased with them both-:

أنَّ رسول الله نهى عن بيع النخل حتى يزهو، وعن بيع السنبل حتى يبيض ويأمن العاهة، نهى البائع والمشتري) متفق عليه

“Allah’s Messenger forbade the selling of dates until they’re ripe, and beans until they’re turn into white and safe from calamity, he forbade the seller and the buyer.” (Muttafaqun ‘alayhe)
The sign of ripening of the fruits are by their turning color into red or yellow, and their delicious taste when consumed. If he bought the harvest after the fruits are ripe and the beans are harden, the transaction is legal and allowed.
And the guidance be (the right of) Allah alone, may He bestows prayers and peace upon Prophet Muhammad, his family, and his devoted companions.
D. Question:
What is the ruling for renting a coconut field? Which means: Someone who possesses a coconut field received 1000 peso from other person, with such contract: The coconut fruits yielded from that field will be the renter’s for the next five years. Is such transaction is permitted in Islam or not?
Answer:
Such transaction is forbidden, because it contains unclarity and gharar (lucky based transaction), since both parties do not know how many coconuts will be yielded in the next five years. The field may yields fruit, and may be not, or it may yields less fruit, or some fruits.
And it is clear that The Prophet Shallallaahu’alayhe wa Sallam:
“Forbade the selling of fruits until they are red or yellow-colored, and it is also clear that he forbade selling of beans until they are harden.” As he also forbade from “the annual selling/al mu’awamah” and as sinin (annual selling).” And the guidance be (the right of) Allah alone, may He bestows prayers and peace upon Prophet Muhammad, his family, and his devoted companions.
E. Question:
One of the citizen came to a wealthy man to order a car. At that time, the had agreed upon the type and model of the desired car. He then paid an amount of money he could afford, with an agreement that he will give him profit-for example- around ten thousand or more, according to the price of car in showroom. After the contract being signed, the rich one went to the showroom to buy the desired car, then he handed it to the first man. The now-owner of the car in turn must pay the rest of price by installments as agreed.
Answer:
If the agreement of trading by both parties were using the price and the car, and after they agreed upon the car’s criteria without appointing on the item, and it was done before the car was bought, then it is a form of salam without any specific time period, since the payment or half of the payment is in the form of debt. Thus it is included in trading of credit by credit. Because when the car was bought by the rich one, the car will be the debt of him, as the price of it also being the debt of the one who ordered it, since none of them have settled their debt. And such transaction is forbidden.
The right method is that both parties shall not make any contract before the buying, but the rich one buy the car and bring it home first. After that, he is allowed to sell the car with a price agreed by them. Whether by installments or by a single payment at a certain period of time. This method is called a trading with a postponed (indebted) payment, and it is legal in sharia.
Finally, what has been explained above is merely based on my limited knowledge. Thus if it conveys any truth, it comes purely from the guidance and aids of Allah The Exalted. Vice versa, if it conveys mistake, it comes from satan and my limited knowledge. Hopefully all of us will be guided by Allah to abandon usury and all of it’s forms and traps, and will be eased to obtain legal fortunes
And Allah knows best.
Author: Dr. Muhammad Arifin Badri, M.A.

Tag : buy and sell

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