Validity of a settlement agreement made by a non-party agent claiming the defendant admits the claim privately.
General Chapter
Al-Mughni
Book of Settlement
Primary text
The apparent view of Al-Khiraqi holds that the settlement is invalid. This position is taken because the agent's claim that the defendant outwardly denies the right while privately admitting it implies an intent to unjustly reduce the claimant's right or buy it for less than its worth. This is seen as reaching the settlement through oppression and aggression, equivalent to the defendant explicitly stating, 'I know your claim is true, but I will not surrender it unless you settle for a portion or compensation.' Conversely, Al-Qadi holds that the settlement is valid. This view is considered the established school (Madhab) and aligns with the opinion of Al-Shafi'i.
Supporting text
If the defendant later confirms the agent's assertion regarding the admission, the claimant gains ownership of the property and the defendant must reimburse the agent for any payment made, provided the agent had authorization for payment. If the defendant denies authorizing payment, the defendant's oath prevails, and the agent's recourse is like that of one who pays another's debt without permission. If the defendant denies the agency entirely, the defendant's oath prevails, the agent does not acquire ownership, and the agent is not granted ownership.