Question
Question: Two parties compromised over a debt of unknown amount for a known sum and mutually agreed. Later the debtor discovered the actual debt was larger than both had reckoned at the time. Must he pay the excess, or was the compromise sufficient?
Answer
Answer—and Allah grants success: This form of settlement is valid in the madhhab (per Sharḥ al-Azhar). Accordingly, the portion of the unknown debt that both parties had in mind at the time of settlement is extinguished. If it later becomes clear that the debt was much larger, the earlier settlement does not cover the excess; rather the debtor must pay the remainder, or obtain the creditor’s release/waiver, that is because it is not permissible to take a Muslim's money except with is willing consent. Allah, Exalted is He, said, “Do not consume one another’s wealth wrongfully” [al-Baqarah:188].
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2
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