Mutual Settlement

"This is about the two men who had a business partnership with a certain amount of asset in which they made a certain amount of profit, there, however, was a loan against that asset which both had to pay. One of them asked the other to give him the capital in exchange for the profit and payment of loan. The Imam said, ‘There is no offense in such deal provided they had established such condition, however, if the condition is against the book of Allah it then is a rejection of the book of Allah.’"

“About two men who each had a certain amount of grain in the possession of the other but no one of them knew how much was the amount, and each one of them had said to the other one, ‘You can have whatever amount of grain is with you and I will have the amount which is with me,’ one of the two Imam, (abu Ja’far or abu ‘Abd Allah), ‘Alayhim al-Salam, has said, ‘There is no offense in such settlement upon which both have mutually agreed/”

“I once asked the Imam (a.s.), about the case of a man to whom another man owed a certain amount of loan who before the due date asked the borrower to pay him half of the loan so he then might cancel the other half in favor of the borrower. He (the Imam) said, ‘Such settlement is lawful.”

“I once asked the Imam about one who before due date of payment, asked a man who owed him a certain amount, to pay him a certain amount and he might write off the rest or extend the due date for payment in his favor. He (the Imam) said, ‘I do not see any offense in such deal as long as he does not increase his capital. Allah, most Majestic, most Glorious, has said, “Your capital belongs to you. (In a deal where you) receive your capital you are not doing any injustice nor is any injustice done to you.” (2:279)’”

“Abu ‘Abd Allah (a.s.), has said, ‘Settlement by means of mutual agreement is permissible for people.’”

“I once asked abu al-Hassan (a.s.). ‘There are four thousand dirhams of a Jew or a Christian and he has died. Is it permissible to reach a settlement about it with his heirs without informing them of the amount?’ He (the Imam) said, ‘No, until you inform them of the amount.’”

"I once asked abu ’Abd Allah (a.s.), about a man who has bailed out another man and has reached a settlement with him.’ He (the Imam) said, ’He can only have the actual amount the man owes to him.”’

“Abu ’Abd Allah (a.s.), has said, ’If one owes a certain amount of debts to another person and he delays payment until the creditor dies and then he reaches a settlement with such person’s heirs whatever they receive belongs to them and the remaining belongs to the deceased who will acquire from him in the next life; but if he does not reach any settlement with the heirs of the deceased all of the loan belongs to the deceased for which the borrower will be held responsible.’”