A flour mill needs 10,000 kg of a specified grade of wheat after four months. It pays a farmer the entire agreed price today. The farmer is not required to deliver wheat from one named field; he must deliver 10,000 kg matching the agreed grade, on the stated date and at the stated place.
This example shows the logic: finance is provided now, while future delivery is made sufficiently certain through detailed specifications.
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Advance-Purchase Sale (سَلَم): Why Future Delivery Is Allowed
A flour mill needs 10,000 kg of a specified grade of wheat after four months. It pays a farmer the entire agreed price today. The farmer is not required to deliver wheat from one named field; he must deliver 10,000 kg matching the agreed grade, on the stated date and at the stated place.
This example shows the logic: finance is provided now, while future delivery is made sufficiently certain through detailed specifications.