Islamic Fiqh > Financial transactions > Sulh (amicable settlement)
Amicable settlement: its three types (with acknowledgment, with denial, with silence), its status, conditions and effects.
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Updated on 31 August 2026 at 3:55 AM
Sulh is the amiable settlement that ends a dispute over wealth or rights. It is lawful by consensus (al-Mawardi, Ibn Qudamah, Ibn Rushd, al-Imrani), recommended in itself; it may become obligatory when it preserves a necessary interest, and forbidden when it entails an unavoidable corruption. The judge urges both parties toward sulh while the truth is unclear to him: Umar wrote to Abu Musa: "press for settlement so long as the judgment has not become clear to you"; once the right is established, judgment applies.
O Ka'b, drop half. He said: I have done so, Messenger of Allah. He said: rise and collect the rest.al-Bukhari 2563, Muslim 1558
It is valid on bodily injury compensation, on housing and on the defect of a sold good, and on everything against which a compensation may be taken; in intentional killing, the verse frames the compensation consented by the next of kin (Quran 2:178).
A sound sulh keeps two safeguards: no right of Allah is traded in it, and no term of a debt is sold in it. Beyond these two limits, renouncing part of one's right in kindness remains a recommended path.