Islamic Fiqh > Financial transactions > Sulh (amicable settlement)
Amicable settlement: its three types (with acknowledgment, with denial, with silence), its status, conditions and effects.
Contents
Updated on 24 September 2026 at 12:48 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.
Bada'i al-Sana'i by al-Kasani · Hanafi school
because the sulh (settlement) upon one hundred against the teeth of the diya is the acquisition of the right in substance; and if the judge determined what is due and judged against him in dirhams, then the liable one settled for two thousand dinars, that is permitted, and taking possession in the session is necessary, as if the killer did so of himself, for it is sarf (money exchange): its conditions are therefore observed, and Allah, the Most High, knows best.
Al-Mughni by Ibn Qudama · Hanbali school
Here he was not prevented from acquitting it, but he acknowledged it and settled with him against it, while giving it to him: it thus resembles the case where he had not denied it.
Question 818; he said: "Whoever acknowledges a right, then settles upon part of it: that is not a sulh, for it is an amputation of the right".