Settlement: Definition of a Settlement

Practical Laws of Islam as per the teachings of Ayatullah Sistani

Ruling 2170

A settlement is when a person compromises with someone to make the latter the owner of part of his property or the usufruct of his property or to relinquish a claim or right he has. In return, the other person gives him part of his property or the usufruct of his property or relinquishes a claim or right he has. In fact, even if a person compromises with someone to give him part of his property or the usufruct of his property or to relinquish a claim or a right of his without taking anything in return, the settlement is valid (ṣaḥīḥ).

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