This refers to a contract which is formed when regular contracts fall short in actualizing what is sought by the two parties or to resolve a dispute between them.
Ruling 538: The usual conditions of the two parties apply here, such as their being competent to enter into contracts, out of their own choice and without having any restriction on their right of disposal over their property.
Ruling 539: The contract is formed by any means that indicate it, whether by words or by conduct, on the condition that it does not make the unlawful lawful and vice-versa, and it does not violate any laws of the Sharia.
Ruling 540: It is a binding contract, so it cannot be annulled except by exercising one’s right of withdrawal if stipulated.
Ruling 541: This contract is valid in the case of a quarrel or dispute or in the case where this is feared, in order to divide the property disputed over between the parties, or to assign it to one of them, or to do anything else that will settle the dispute or prevent it from occurring.
Ruling 542: It is permissible to enter into a dispute resolution agreement by which jointly-owned properties in undivided portions are divided and specified for each party; for example, two joint-owners of a goat and sheep, who own an unspecified 50% each, come to an agreement of one of them taking ownership of the goat and the other taking ownership of the sheep.
Ruling 543: It is permissible to enter into a dispute resolution agreement when the parties are uncertain about their rights, such that specification of what each party owns is required.
Ruling 544: It is permissible to enter into a dispute resolution agreement by a person who believes that holds a right, or his guardian, when it is doubted whether such a right is established for him, in such a way that clears any doubt.
Ruling 545: It is permissible to enter into a dispute resolution agreement of surrendering a part of one’s established known right to the other party, with the following two conditions:
(1) that the owner of the right knows the amount that he is entitled to;
(2) that the compromise is based on the true and good intent to absolve the other party from that part of the amount owed to him.