Khul` is an out of the court settlement
1. In Islamic law, khul` is a compromise between the husband and the wife whereby the wife relinquishes some of her rights and, in consideration thereof, the husband pronounces divorce. As it is a contract that has to be concluded by the parties between themselves, a cause of action cannot arise till the parties enter into an agreement. The judge merely confirms the contract and pronounces divorce. Thus, it is an out-of-the-court settlement.

2. If the husband does not pronounce divorce - or any other word or statement signifying divorce - the court cannot dissolve the marriage contract. Hence, even after the court had decreed that the marriage was dissolved, it remained intact. As a result, the lady continues to be the wife of that person and she cannot marry another person.

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