Section VI Compromise

1. The Elements of Compromise

Article 549

Compromise is a contract by which two parties put an end to a dispute that has arisen, or prevent a dispute that is expected to arise, by the mutual surrender of part of their respective claims.

Article 550

In order to effect a compromise, the parties must have legal capacity to dispose for valuable consideration of the rights which are the objects of the compromise.




Article 551

A compromise cannot be made on any question touching the status of individuals or public policy, but a compromise may be made with regard to proprietary interests arising out of the status of individuals or out of a penal offence.

Article 552

A compromise can only be established by a written document or by an official procès-verbal.

2. The Effects of Compromise

Article 553

Compromise terminates the disputes in respect of which the compromise is made.

It extinguishes the rights and claims which either of the parties have finally renounced.

Article 554

Compromise has a declaratory effect as regards the rights in respect of which the compromise is made. This declaratory effect is limited specifically to litigious rights.

Article 555

The wording of the renunciation contained in the compromise must be strictly interpreted. The renunciation, no matter how worded, applies to those rights only which form the precise object of the dispute settled by the compromise.

3. Nullity of Compromise

Article 556

A compromise cannot be impugned on the ground of a mistake in law.

Article 557

A compromise is indivisible. The nullity of one part of a compromise involves the nullity of the whole contract.

This rule does not apply, however, when it follows, from the wording of the contract or from the circumstances, that the parties agreed that the various parts of the compromise are independent the one of the other.