If he says: "I have given it to you as charity (sadaqah)," it is valid, for the Qur'an uses the word "sadaqah" regarding the release from debt in the words of Allah Almighty: "...unless they forgo it as charity." If he says: "I have pardoned you for it," it is valid; because Allah Almighty said: "...unless they forgo it or he in whose hands is the marriage tie forgoes it," referring thereby to the release from the dowry. If he says: "I have remitted it from you," it is valid; because he has utilized the literal meaning for which the expression was coined. If he says: "I have made you the owner of it," it is valid; because it is equivalent to his gifting it to him.

Section: If he gifts the debt to someone other than the one who owes it, or sells it to him, it is not valid. Abu Hanifah, al-Thawri, and Ishaq held this same view regarding sale. Ahmad said: "If a man owes you food as a loan, sell it to the one who owes it for cash, but do not sell it to someone else for cash or on credit. If you have lent a man dirhams or dinars, do not take commodities from someone else for what is owed to you." Al-Shafi'i said: "If the debt is owed by an insolvent person, one who procrastinates, or one who denies it, the sale is not valid because delivery of it is impossible. If it is owed by a solvent person who is willing to pay, there are two views: one of which is that it is valid, because he has purchased wealth established in the liability, so it is valid, just as if he had purchased it on his own liability; provided that he purchases it for a specific asset or that they take possession of it during the session, so that it is not a sale of debt for debt. Our position is that he is unable to deliver it, so it is not valid, like the sale of a runaway slave. As for gifting it, it is possible that it is not valid, like a sale, and it is possible that it is valid; because there is no uncertainty (gharar) in it for the donee or the donor, so it is valid, like the gifting of physical assets.

Section: Acquittal from an unknown [debt] is valid if there is no way for the two parties to know it. Abu Hanifah said: It is valid absolutely. Al-Shafi'i said: It is not valid, but if he wishes to do so, he should say: "I acquit you of [any amount] from one dirham to a thousand." This is because ignorance is only prohibited due to uncertainty, and if he is satisfied with the total, the uncertainty is removed, and the acquittal is valid. Our position is that the Prophet (peace and blessings of Allah be upon him) said to two men who disputed before him regarding inheritances