Orders regarding compromise
2168. Compromise means that a person agrees to give to another person his own property or a part of the profit gained from it, or waives or forgoes a debt, or some right, and that other person also gives him in return, some property or profit from it, or waives his debt or right in consideration of it; and even if a person gives to another person his property or profit from it, or waives his debt or right without claiming any consideration, the compromise will be in order.
2169. It is necessary that the person who gives his property to another person by way of compromise, should be adult and sane, and should have the intention of making compromise, and none should have compelled him to make the compromise, and he should not also be feeble-minded from whom his own wealth is made inaccessible, or a bankrupt who has no right to dispose of his property.
2170. It is not necessary that a formula of compromise be recited in Arabic. Rather, it is sufficient to convey the intention by uttering any words.
2171. If a person gives his sheep to a shepherd so that, for example, he may look after them for one year, and use their milk and give him a quantity of ghee, and in this manner compromise with the shepherd for his labor, and a quantity of ghee against the milk of the sheep, the transaction is valid. Rather, if he gives the sheep to the shepherd for one year on lease, so that he may utilise their milk and give him a quantity of ghee, not necessarily churned from the milk of the leased sheep, this transaction is also in order.
2172. If a person wants to make a compromise with another person in respect of the debt which he owes, or in respect of his right, the compromise will be valid only if the opposite person agrees to it. But, if he wants to forgo the debt or right owed to him, the acceptance by the opposite person is not necessary.
2173. If a debtor knows the amount he owes, but the creditor does not know and makes compromise with the debtor for an amount less than what is owed to him, like, if the creditor has to receive $50 but he unknowingly makes a compromise for $10, the balance of $40 is not halal for the debtor, except that he himself tells the creditor what he actually owes him, and seeks his agreement. Alternatively, the debtor should be sure that even if the creditors had known the exact amount of the debt, he would have still settled for that lesser amount.
2174. If two persons owe each other some property, ready or on credit, and they know that one of them is more in quantity or value then the other, they cannot sell their properties in exchange of each other because it will be a transaction involving usury, and similarly, it is haraam to conclude a compromise between them. In fact, if it is not known that one is more in quantity or value than the other, but there is a strong probability, as an obligatory precaution, no compromise should be made.
2175. If two persons are the creditors of one or two persons and they,
as creditors, wish to settle their debts between themselves, if as previously
mentioned, no aspect of interest is involved in the transaction, there will
be no objection.
For example, if both of them are owed 10 kilos of wheat, one of superior quality and the other inferior, and the debt has become due for payment, the compromise will be in order between the creditors.
2176. If a person lent something to another for a stipulated period,
and now he, as a creditor, wishes to compromise on something lesser in value,
with an intention to collect what he gets and forgo the balance, there is no
harm in it. This rule applies when the debt consists of gold or silver or another
commodity which is sold by weight or by measure.
As for other things, however, it is permissible for the creditor to compromise with the debtor, or with someone else for a lower amount, or to sell that debt, as will be explained in note no. 2297.
2177. If two persons make a compromise in respect of something, they can cancel the compromise with mutual consent. Similarly, if while concluding the agreement one or both of them is given the option to cancel the compromise, the person who possesses that option can cancel the compromise.
2178. As long as the buyer and the seller do not leave the place where
a transaction was concluded, they can cancel the transaction. Also, if a buyer
purchases an animal, he has the right to cancel the transaction within three
days. And similarly, if the buyer does not pay within three days for the commodity
purchased by him, and does not take delivery of the commodity, the seller can
cancel the transaction, as stated in rule no. 2132. However, one who makes a
compromise in respect of some property, does not possess the right to cancel
the compromise in these three cases.
However, if the other party in the compromise makes unusual delay in delivering the property over which the compromise was reached, or if it has been stipulated that the property will be delivered immediately, and the opposite party does not act according to this condition, the compromise can be cancelled.
And similarly, compromise can also be cancelled in other cases which have been mentioned in connection with the rules relating to purchase and sale, except in the case when one of the two parties in compromise has been defrauded, for which the law is not ascertained.
2179. A compromise can be cancelled if the thing received by means of compromise is defective. However, it is a matter of Ishkal, if the person concerned desires to take the difference of the price between the defective thing and the one without defect.
2180. If a person makes a compromise with another person with his property and imposes the condition that after his death the other person will, for example, waqf that property, and that person also accepts this condition, he should carry it out.