The Prophet’s statement, “to a specified term,” refers to the term being known—that is, it must not be an unspecified term. This is the stronger view.
His statement, “for a price received,” means that the price must be taken in possession. If it is not received, the contract is invalid and unsound; and if payment is deferred, then it is invalid all the more so.
His statement, “in the session of the contract,” means that the recipient of the salam payment must take possession of the price during the contractual session. If he receives it after the two parties have separated, it is not valid. Must this be in the very place where the contract was concluded, or does it simply mean that they must not separate before possession is taken?
The answer is the latter: what is meant is that they must not separate before possession is taken. Thus, if they agree upon a salam contract in the marketplace, then go together to the purchaser’s house and he gives him the price there, without their having separated, the salam contract is valid, because possession took place before they separated. Thus, what the author means by his statement, “in the session of the contract,” is: so long as they have not separated. As we said regarding the option of the contractual session, it continues until the parties separate, even if they leave the place where the contract was concluded. What matters, then, is that they do not separate.
The permissibility of salam is among the merits of Islam. This is demonstrated by the fact that, in the past, farmers needed money. A farmer would come to a merchant and say, for example, “Give me one hundred riyals.” The merchant would say, “I will not give you that.” The farmer would then say, “After six months or a year have passed, I will give you one hundred sa's of wheat for the one hundred riyals.” Both parties benefit: the recipient of the salam payment—that is, the seller—benefits from the price paid to him in advance, while the purchaser benefits because the price will be lower than in a spot sale. That is, if one hundred sa's of wheat are worth fifty, he will enter into salam with him for forty, because he must derive some benefit. But if he wished to enter into salam with him at the ordinary price—