A modern application of salam whereby a party to the salam contract enters into a separate, independent salam contract with a third party in order to purchase/ sale goods of a similar specification (as those of the original salam contract) so that the original salam obligation will be discharged by delivering/ taking delivery of these goods. As such, the seller in the first salam contract becomes the buyer in the second salam contract.

Likewise, the buyer in the first contract becomes the seller in the second one. The description of the underlying commodity will need to correspond to the description of the good subject matter of the original contract. From a shari’a standpoint, it is not permissible that the parties make the rights and obligations under the two contracts contingent on each other. This means, if one party breaches his obligation under the first salam contract, the other party (the party suffering non-performance) has no right to relate any resulting damage or loss to the party with whom he concluded the second salam

contract (parallel salam). Consequently, he has no right, having incurred any loss or damage under the first contract, to terminate the second salam contract or to put off its delivery date to a farther date.

Salam tamwili (in Arabic script: سلم تمويلي) translates as financing salam.