Is it permissible to agree upon a specific sum of money to settle previous financial disputes and clear the consciences of both parties, even if one of the parties was wronged?

Reconciliation between disputing parties is unanimously legislated and is permissible among Muslims, unless it is a reconciliation that forbids what is lawful or permits what is unlawful. If reconciliation is reached with the consent of the reconciling parties, their obligations are discharged by it, even if the actual right differs from what they reconciled upon. Reconciliation is valid for an unknown right, whether a debt or a specific item, if its knowledge is unattainable, by means of a known sum of money. This is due to necessity and to avoid the loss of rights, such as a wife reconciling for an unknown dowry, or old transactions and accounts where the parties do not know the extent of their rights. However, it is a condition that the rights holder who knows the amount does not take more than what is due to him, otherwise the reconciliation would be void and forbidden in his regard. Similarly, he who owes a right and knows its amount is not permitted to reconcile for less than what he knows.