Parallel Salam

Bai salam
Bai salam is an Islamic finance tool used to generate working capital and consists of a contractual sale in which advance payment is made by the buyer to the seller for the deferred supply of goods at a specified date pre-determined in the contract.  Thus, it is a sale and purchase transaction whereby the payment is made in cash at the point of contract, but the delivery of the asset purchased will be deferred to a pre-determined date.

Parallel Salam
The financier may at the same time enter into a parallel but separate bai salam with a third party to resell the asset for an increased price  or it may simply sell the asset on delivery.
Conditions of the Parallel Salam
  1. There must be two different and independent contracts, these two contracts cannot be tied together, and performance of one should not be contingent on the other.
  2. Parallel Salam is allowed with the third party only.
(http://www.scribd.com/doc/37532527/Bai-Salam-by-Mufti-Mujeeb)

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