Allah^-SWT swears by the pen, and whatever it writes. In other words, the Holy Prophet^-SW despite being unlettered dished out such extensive knowledge that the pen and all its writings testify to his^-SW perfect and matchless wisdom.

Lunatic

When the Holy Prophet^-SW announced his^-SW Prophethood inviting the entire mankind to Truth, provided the true beliefs and a comprehensive Code of Life the polytheists labelled him^-SW a lunatic. This was because even the most powerful of the world‘s empires had failed to implement a single system across the globe. And they recognized the Holy Prophet^-SW as an unlettered person, supported by a few Muslims who were worthless in their view. And the people of the world were diverse in terms of attitudes, and thinking, colour and race, languages and climates. How could then a system, superseding all other, be formulated? And even if it was, how could the whole world accept it?

Seeing all this, the infidels concluded that no sensible person could promote such a creed. But Allah^-SWT's Book and its explanation- the Sunnah of the Holy Prophet^-SW are a witness that his^-SW wisdom is par excellence. As a Divine favour his^-SW recompense will never end, as all the good prevailing on the face of earth is dispensed by him^-SW. His^-SW manners are the most refined. He^-SW is anxious for the welfare of even his^-SW enemies in both the worlds. The Quran predicts that soon the Holy Prophet^-SW would see and the infidels would know who was deluded. And in a short period, the pride of infidels went with the wind and Islam was practically enforced in Arabia during his^-SW lifetime. Only Allaah^-SWT Knows who is wrong and who is right. And what He^-SWT declares as right is indeed right.

Hypocrisy

The Holy Prophet^-SW must never accede to what these liars say. They want him^-SW to be facile and leave them alone, to stop calling evil an evil and in return offering relaxation in vexing the believers. Yet he^-SW must never give in.

Ruling

A pact with the non believers promising mutual restraint is hypocrisy and is forbidden. (Mazhari)

And he must not listen to a person, habitually swearing, who is unappreciative, taunting and backbiting, impedes piety, trespasses the limits, is an evildoer and ignorant. Above all, his lineage is doubtful as his real father is unknown. The person who had brought this proposal on behalf of the infidels had such traits.

Of the one Taunting the Holy Prophet^-SW

In principle, even a non believer is to speak respectfully. And whoever uses taunting language for the Holy Prophet^-SW directly or by insulting his^-SW wives or his^-SW Companions, all the above vices are a part of his character and even his lineage is polluted. A person despite affluence and a large household, is worthless if he calls Allah^-SWT's Ayat as fables of times gone by. Allaah^-SWT shall scar the noses of such liars on the Day of Judgment, to humiliate them publically. Allaah^-SWT tries people by His^-SWT bounties, just as He^-SWT had tried the owners of the orchards. They neglected His^-SWT Greatness and believed the harvest to be their own achievement. Allaah^-SWT ravaged their orchards a night before harvesting. Early morning, they hurried to pick the fruit before the beggars swarm up to take away a portion thereof but were awe stricken to behold the unexpected devastation. First they thought that they had hit upon a wrong place, but soon realized what went wrong. Someone from amongst them announced that it was their ingratitude and also their reluctance to give a portion of the yield in His^-SWT Name, that had ruined them.

One who does not Check Evil is a Party to it.

Though the said announcer had known that their conduct was wrong, yet he had neither tried to correct nor separated from them. Consequently, his orchard was also destroyed. They all repented, confessed their crime and begged Allaah^-SWT to forgive them acknowledging that all bounties were from Him^-SWT . But the infidels of the Holy Prophet^-SW time were much dumber, as they did not repent even after witnessing visitations. They should have realized that the torments of the Hereafter were infinitely severer as compared to this world.