In salam, receipt of the price within the contractual session is a condition. Taking a watch as collateral secures the seller’s claim; it is not itself a transfer of the price.
If the purchaser merely pledges a watch and the parties leave without payment, the collateral alone does not cure the defect. A different outcome is discussed where the pledge perishes during the session and its secured value is treated as constructively received.
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Collateral is not the advance payment
Kitab al-Rahn: Salam, Sarf, Third-party Custody and Fungible Collateral
In salam, receipt of the price within the contractual session is a condition. Taking a watch as collateral secures the seller’s claim; it is not itself a transfer of the price.
If the purchaser merely pledges a watch and the parties leave without payment, the collateral alone does not cure the defect. A different outcome is discussed where the pledge perishes during the session and its secured value is treated as constructively received.