Understanding Islamic Finance - Doha Academy of Tertiary Studies

256 Understanding Islamic Financestipulated specifications or the same have been offered to it before the fixed date. Thebank’s refusal will be optional in the latter case.• The bank, after entering into a Salam contract, can enter into a parallel contract or apromise with any third party to sell the same commodity with the same specifications anddate of delivery. The two contracts would be enforceable separately and independently.Box 10.1:Flow of Salam Transactions by BanksSALAM SELLERSALAMPURCHASER1 23Delivery ofSalam onSalam SaleCommodityCreditISLAMIC BANKPurchaserSeller1. The bank will purchase the item from client A with full prepayment of the price anddelivery on an agreed specified date.2. The customer (seller) will deliver the commodity at the agreed time and place.3. The bank will sell the commodity to any third party C by way of any of the followingalternatives:— Parallel Salam with C for receipt of full payment;— get a promise to purchase from C at any agreed price;— appoint A its agent to sell it to any third party;— wait until the goods are received and then sell in the market.4. After taking delivery from A on the agreed date, the bank may make delivery to Cor any other purchaser.