Settlement: Conditions for a Person Making a Settlement

Practical Laws of Islam as per the teachings of Ayatullah Sistani

Ruling 2171

A person who settles his property with someone must be of the age of legal responsibility (bāligh), sane (ʿāqil), and he must have an intention (qaṣd) to settle. Furthermore, no one must have compelled him [to settle], and he must not be foolish with finances (safīh)[1] nor be prohibited from having disposal over that property because of bankruptcy.

-Ayatullah Sistani, Practical Laws of Islam, Settlement (Sulh)