Compromising a Doubtful Loan and Ribbis

Question

First let's get the case:

Reuven lends $100 to Shimon to be paid back in a year. There is no record of the amount of the loan.

And then, one month later, one of the following happen:

• Shimon approaches Reuven, and offers him the $100 he owes. Reuven, however, refuses and claims that the original amount was actually $50.
• Shimon approaches Reuven, and offers him the $50 he thinks he owes. Reuven, however, refuses and claims that the original amount was actually $100.
• Shimon approaches Reuven, and offers tells him, "I know I owe you money, but I don't remember if it was $50 or $100." Reuven agrees that he also cannot recall, but he does remember it was either $50 or $100.

Reuven and Shimon are good friends, and honest people. They also realize that they both are not really sure of how much was owed, and recognize that they each may be mistaken. So Reuven and Shimon both agree that Shimon should pay back $75 as a compromise.

So, is this allowed, or is it a case of ribbis? And if it's allowed, why is it not ribbis?

Answer 1

This is precisely what the beis din would try to do lechatechilah- the Halachic term is p'sharah. It is the best outcome as it creates peace. (Shulchan Aruch C.M. 12:2; S'ma 6)