In modern financial understanding, the Salam contract represents a forward financial transaction with full advance payment for the future delivery of a specific quantity of goods of a specified quality. This contract is primarily used in agriculture to meet the financial needs of small and medium-sized farmers during the planting period.

Conditions of the Salam contract:

1. Salam is a sale with the condition of deferred delivery in exchange for immediate payment. Hence, the validity of the Salam contract requires the full payment of the goods' price by the buyer at the time of the transaction.
2. The Salam contract can only be applied to goods whose quality and quantity can be clearly determined. Goods for which the specification cannot be established due to their unique characteristics cannot be the subject of a Salam contract. For example, precious stones cannot be sold through a Salam contract because each stone usually differs in size or weight from another, making it impossible to determine their exact specifications.
3. The Salam contract cannot be entered into for the production of goods from a specific field or trees because there is a risk of damage to the crop or crop failure, which could jeopardize the contract's fulfillment.
4. The quality of the goods must be clearly stipulated to avoid potential disputes.
5. The quantity of the goods must be established in specific measurements and terms. If the goods are sold by weight or other units of measurement, the weight or quantity must be clearly defined.
6. The agreement should include the exact date and place of delivery of the goods.
7. A Salam transaction cannot be applied to ribawi (monetary) goods, the delivery and exchange of which must be spot. For example, the barter of wheat for barley or gold for silver.
8. The transaction cannot be canceled after the contract is concluded.