Given the historic origins of Sharia principles and jurisprudence in general and those underlying the development of bai salam, much of the terminology revolves around commodities and agriculture. Since the application of most Sharia structures has expanded to accommodate a wider variety of circumstances and more current situations, this Practice Note will refer to “assets” rather than “commodities”. It is important to note that not all assets qualify for use in a bai salam structure.

In bai salam transactions the seller is called muslam ilaih, the buyer is referred to as rabb-us-salam, the term for the purchase price is ra's-ul-mal and the asset is called muslam fih.

Bai salam is also frequently referred to as bay salam, bai al-salam or bay al-salam.