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https://ethica.instituteMODEL SALAM AGREEMENT THIS SALAM AGREEMENT (the Agreement) is made at___ on ___ day of ___ by andBETWEEN___, (hereinafter referred to as the Supplier which expression shall
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How to fill out salam contract in islamic

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How to fill out salam contract in islamic

01
Identify the goods to be sold, ensuring they are permissible in Islam.
02
Agree on the price to be paid in advance, ensuring it is fair and transparent.
03
Specify the quantity of goods being sold, detailing the exact measurement or count.
04
Determine the delivery date for the goods, ensuring it is reasonable and agreed upon.
05
Write down all terms of the contract clearly and ensure both parties understand and accept them.
06
Sign the contract by both parties, acknowledging all terms and conditions.

Who needs salam contract in islamic?

01
Farmers who need capital to grow crops.
02
Suppliers who wish to secure orders for products in advance.
03
Buyers looking for a guaranteed supply of goods.
04
Investors interested in financing agricultural projects.
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The salam contract in Islamic finance is a forward sale contract where the buyer pays in advance for goods to be delivered at a future date. This contract is used primarily in agricultural sectors and is compliant with Sharia law.
In Islamic finance, any party wishing to engage in a salam contract, typically a buyer who seeks to pre-purchase goods to be delivered later, is required to file the salam contract.
To fill out a salam contract, both parties must agree on the terms including the quantity, quality, price, description of the goods, delivery date, and payment terms, and then document these terms in a written contract.
The purpose of a salam contract is to provide immediate cash flow to the seller while ensuring that the buyer gets the goods delivered at a specified future date, thus facilitating trade and agricultural financing.
The salam contract must report information such as the price and payment terms, a detailed description of the goods, the quantity being sold, and the agreed-upon delivery date.
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Salam Agreement Supplier Institution Contract Price Goods Event of Default Payment Terms Security Provisions Indemnity Force Majeure

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