Settlement: The Formula (Sighah) of a Settlement

Practical Laws of Islam as per the teachings of Ayatullah Sistani

Ruling 2172

It is not necessary for a formula (ṣīghah) to be said [for a settlement to be valid, nor does it have to be] in Arabic; rather, it is valid by means of any words or actions that make it understood that the parties have concluded a settlement and have compromised with each other.

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