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Al-Majallah al-Ahkam al-‘Adaliyyah
Book 12, Chapter 2
Chapter 2: The Consideration and Subject Matter of the Settlement.
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If the consideration of the settlement is some specific object, such object
is considered as an article which has been sold. If it is a debt, it is
considered to be the price. Consequently, anything which may be the subject
of sale or the price thereof in a contract of sale, may also be the consideration
for a settlement.
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The consideration of the settlement must be the property of the person
making the settlement. Consequently, if the person making the settlement
offers some other person's property as the consideration for the settlement,
such settlement is invalid.
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If it is necessary to take and give delivery of either the consideration
of the settlement or the subject matter thereof, such thing must be clearly
defined. If not, it need not be clearly defined.
Examples: (1). A brings an action against B with regard to a house in the
possession of B. B brings an action against A with regard to a garden in
the possession of A. Both agree to a settlement of their actions without
defining the nature of the dispute.
(2). A brings an action against B with regard to a house without defining
the nature of the dispute, and they come to a settlement on the terms that
the defendant shall pay the plaintiff a certain sum of money and the plaintiff
shall drop the action. The settlement is valid. But if a settlement is
made whereby the plaintiff gives the defendant a certain sum of money and
the defendant in consideration thereof gives up his claim, such settlement
is invalid.
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