Salam istisna conditions 3 salam cannot be effected

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Salam & Istisna
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Conditions 3. Salam cannot be effected on a particular commodity or on a product of a particular field or farm. 4. It is necessary that the quality of the commodity (intended to be purchased through Salam) is fully specified leaving no ambiguity which may lead to a dispute. All the possible details in this respect must be expressly mentioned. 5. It is also necessary that the quantity of the commodity is agreed upon in unequivocal terms. 6. The exact date and place of delivery must be specified. Salam & Istisna
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Conditions 7. Salam cannot be effected in respect of things which must be delivered at spot. For example, if gold is purchased in exchange of silver, it is necessary, according to Shari‘ah , that the delivery of both be simultaneous. Salam & Istisna
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Salam as a Mode of Financing Can be used by the modern banks and financial institutions, especially to finance the agricultural sector. Price in Salam may be fixed at a lower rate than the price of those commodities delivered at spot. In order to ensure the delivery on the agreed date, the banks can demand a security / collateral. The only problem is that the banks do not have expertise in commodities. Salam & Istisna
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Parallel Salam Bank enters into two different contracts. In one of them, the bank is the buyer and in the second one the bank is the seller. Each one of these contracts must be independent of the other. They cannot be tied up in a manner that the rights and obligations of one contract are dependant on the rights and obligations of the parallel contract. Each contract should have its own force and its
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