Features

• There must be a written contract between the Bank and the client which shall be the principal instrument to govern the advance buying and selling.
• The name and description of the commodity, specification, quantity, quality, size, date, time and place of delivery, transportation cost & godown rent if any, must be mentioned clearly in the contract.
• Purchase price, shall be paid in advance as mentioned in the contract immediately after signing the agreement. If mentioned in the contract delivery of the commodity/product can be taken in instalments also.
• If the client fails to deliver the commodity in time as per specification as well as in specified quantity, the client shall be bound to repay the price received earlier in advance against the product alongwith compensation for delayed period. On the other hand if, the Bank receives less than the quantity contracted for, the client must pay back the value of product supplied less than the quantity contracted for.
• It is not necessary to mention cost of product and profit separately in the contract. Only purchase price of the product may be mentioned.
• Bai-Salam is the only exceptional mode allowed by Islamic Shariah in which case goods can be sold without having goods in possession & existence. If the goods are ready for sale Bai-Salam is not allowed in Shariah.
• After taking delivery of the goods, Bank shall be the owner & shall bear all risk till delivery of the same to the purchaser.