Salam
A forward sale contract where payment is made in advance for future delivery of goods.
Overview
Salam is a forward sale contract where the buyer pays the full price of a specific commodity that the seller promises to deliver at a future date. This contract is particularly useful in agricultural financing.
Common Applications
- Agricultural financing
- Manufacturing pre-orders
- Commodity trading
Key Features
- Full payment made upfront
- Precise specification of goods required
- Fixed delivery date
- Commonly used for standardized goods