Sunnah:

It is narrated from ’Amr ibn ’Awf Al-Muzani that the Prophet ﷺ said: ((الصلح جائز بين المسلمين إلا صلحاً أحل حراماً ، أو حرم حلالا)) "Reconciliation is permissible between Muslims, except for a reconciliation that permits what is unlawful or forbids what is lawful" [Reported by Abu Dawood, Hadith 3594; At-Tirmidhi, Hadith 1352; Ibn Majah, Hadith 2352; authenticated by Sheikh Al-Albani]. The Prophet himself was actively involved in reconciling between people. The consensus of the Muslim Ummah further supports the legitimacy of reconciliation, provided it is aimed at seeking the pleasure of Allāh, followed by the satisfaction of the disputants. Thus, the Qur'ān, the Sunnah, and the consensus of the scholars confirm the legitimacy of reconciliation. ------------------------ PILLARS: Ṣulḥ stands on 3 pillars: 1. Two disputing parties (العاقدان) 2. The subject of the settlement (the disputed matter محل النزاع), 3. The settlement agreement (the compensation agreed upon in the settlement بدل الصلح). CONDITIONS: 1. The parties must be legally competent. 2. Mutual Consent 3. The Subject of the settlement must be a lawfully recognised asset. A settlement involving prohibited items such as alcohol, carrion, or blood is invalid. 4. The Settlement must not permit what is prohibited or prohibit what is permitted 5. The parties must not be lying in their claims Once the conditions are met, through this settlement, legal disputes between the parties are formally resolved, and their claims will no longer be heard thereafter. ------------- المسألة الثانية: أنواع الصلح العامة The General Types of Reconciliation: Reconciliation among people can take several forms [FIVE TYPES]: 1. Reconciliation between Muslims and non-Muslims [through عقد الذمة أو الهدنة أو الأمان as discussed in Kitab Al-Jihad] 2. Reconciliation between Warring Factions among the Muslims (بغاة vs أهل العدل). Allāh, the Exalted, says: ﴿وَإِن طَائِفَتَانِ مِنَ الْمُؤْمِنِينَ اقْتَتَلُوا فَأَصْلِحُوا بيْنَهُمَا﴾ "If two parties among the believers fight, then make peace between them" (Al-Hujurat: 9). 3. Reconciliation between disputing Muslim in their dealings (معاملات - three types) 3.1: Reconciliation between spouses when discord is feared (المعاملات الأسرية) Allāh, the Exalted, says: ﴿وَإِنْ خِفْتُم شِقَاقَ بَيْنِهِمَا فَأَبْعَثُوا حَكَمَا مِنْ أَهْلِهِ، وَحَكَمَا مِنْ أَهْلِهَا إِن يُرِيدَا إِصْلَاحًا يُوَفِّقِ اللَّهُ بَيْنَهُمَا﴾ "And if you fear dissension between them, then appoint an arbitrator from his family and an arbitrator from her family. If they both desire reconciliation, Allāh will bring about harmony between them" [An-Nisa: 35] Similarly, if a wife fears neglect or disinterest from her husband, Allah says: {وَإِن امْرَأَةٌ خَافَتْ مِنْ بَعْلِهَا نُشُورًا أَوْ إِعْرَاضَا فَلَا جُنَاحَ عَلَيْهِمَا أَن يُصْلِحَا بَيْنَهُمَا صلحاً وَ الصُّلْحُ خَيْرٌ﴾ "And if a woman fears from her husband, neglect or disinterest, there is no blame upon them if they reconcile between themselves. And reconciliation is better" [An-Nisa: 128] 3.2: Reconciliation between disputants in matters other than financial matters. 3.3: Reconciliation between disputants over financial matters (المعاملات المالية), which is the main focus of our discussion. This type can be classified into two types: 1. الصلح على الإقرار Reconciliation upon Acknowledgment of the Right [This occurs when a person claims a right against another, such as a debt or a specific item. The defendant acknowledges the claim but then requests a settlement involving a partial concession of the claimed asset or an asset/benefit other than the one claimed] 2. الصلح مع الإنكار Reconciliation with Denial [This occurs when a person claims a right against another, such as a debt or a specific item. The defendant does not acknowledge the claim, denies the claimant's right, or remains silent, they then reconcile by agreeing to a payment, either immediate or deferred.]