things that people of noble character are loath to endure, and they find such proceedings irksome; they therefore hand over the money merely to be released from them. If, after the settlement, a defect is discovered in the property for which the agreement was struck, the recipient has no right to return it on that ground, nor can it be taken through pre-emption (shufʿa), because he never regarded it as consideration for anything.

Should either party lie during a settlement that follows denial—for instance, if the claimant fabricates a demand for something he knows is not his, or if the defendant denies a claim he knows to be true while the claimant also knows that he is lying—then the settlement is inwardly invalid for the one who lies. Such a person is aware of the real entitlement, is able to deliver it to its rightful owner, and does not believe himself justified in what he is doing; whatever he obtains by means of that settlement is unlawful to him, for he has taken it by sheer wrongdoing, not as compensation for a right he actually possesses. Allah Most High has said: “Do not consume one another’s wealth unjustly” (Q. 4:29). Although to outward observers the settlement may look sound—since they are unaware of the hidden reality—this changes nothing before Him to whom nothing in the heavens or on earth is concealed. A Muslim must therefore steer clear of such disgraceful conduct and fraudulent ploys.

Among the issues related to settlements after denial is the following: if a third party, without the defendant’s authorization, concludes a settlement on his behalf, the settlement is valid, because the outsider’s purpose is to release the defendant from the claim and end the dispute, just as if he had paid off the defendant’s debt. Nonetheless, the third party may not seek reimbursement for what he has paid, for he acted as a volunteer and has no right of recourse.

It is also valid to conclude a settlement concerning an unknown right, whether each party may owe something to the other or only one of them does, provided that the unknown amount cannot realistically be determined—for example, in the case of an intricate set of accounts