Civil Code > TITLE XX COMPROMISE AND ARBITRAL SUBMISSION 1

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TITLE XX COMPROMISE AND ARBITRAL SUBMISSION

CHAPTER 1. Compromise

Section 1. Compromise in General

Art. 3307 – Definition.

A compromise is a contract whereby the parties, though mutual concessions, terminate an existing dispute or prevent a dispute arising in the future.

Art. 3308 – Conditions as to form.

(1) A compromise may be made to create, to modify or to extinguish legal obligations.

(2) The forms required by law for the creation, modification or extinction of these obligations without consideration shall be complied with.

Art. 3309 – Interpretation – 1. Principle.

The terms of the compromise entailing renunciation shall be interpreted restrictively.

Art. 3310 – 2. Application.

(1) Renunciation by one party of all his rights, actions and claims shall entail the extinction of such rights, actions and claims only in respect of which the compromise has been reached.

(2) Where a person who has made a compromise on a right which he possessed in his own right acquires subsequently a similar right though another person, he shall in no way be bound in respect of the newly-acquired right by the previous compromise.

Art. 3311 – Relative effect.

A compromise made by one interested party shall not be binding on the other interested parties and may not be set up by them.

Art. 3312 – Mistake of right.

(1) As between the parties, the compromise shall have the force of resjudicata without appeal.

(2) It may not be contested on the ground of a mistake made by one or both of the parties concerning the rights on which they have compromised.

Art. 3313 – Fundamental mistake. – 1. Void or false documents.

(1) A compromise may be invalidated on the ground of mistake where the instrument for the performance of which it is made is void.

(2) It may also be invalidated where the agreement of one or both of the parties was due to the existence of a document which is shown to be false.

(3) The compromise shall be valid in either case where, at the time of the contract, the parties had in view the possibility that the instrument might be void or the document false.

Art. 3314 – 2. Unknown judgment.

(1) A compromise may be invalidated where the dispute which it was intended to terminate has been settled by a judgment having the force of res judicata of which one or both of the parties were unaware.

(2) Where an appeal lies from the judgment of which one or both of the parties are unaware, the compromise shall remain valid.

Art. 3315 – 3. Compromise effecting general settlement.

(1) Where the parties have reached a general settlement on all the matters they may have had in common, the compromise may not be invalidated on the ground that documents unknown to one or both of the parties at the time of the contract, have subsequently been discovered.

(2) The compromise may however be invalidated in such a case where the documents in question were willfully withheld by one of the parties at the time of the contract.

Art. 3316 – Illicit object.

A compromise relating a contact the object of which is contrary to the law or to public morality shall be of no effect.

Art. 3317 – Warranties due by parties.

(1) The compromise shall have a declaratory effect as regards the rights which one of the parties renounces therein.

(2) The conditions and forms required by law for the transfer of the right renounced shall be complied with.

(3) The parties to the compromise shall not give each other any warranties concerning these rights, save that of their personal act and such other warranty as may have been expressly stipulated.

Section 2. Conciliation

Art. 3318 – Appointment of conciliator.

(1) The parties may entrust a third party with the mission of bringing them together and, if possible, negotiating a settlement between them.

(2) The conciliator may be appointed, at the request of the parties, by an institution or by a third party.

(3) The person appointed conciliator shall be free to accept or to refuse his appointment.

Art. 3319 – Duties of parties.

(1) The parties shall provide the conciliator with all the information necessary for the performance of his duties.

(2) They shall refrain from any act that would make the conciliator’s task more difficult or impossible.

Art. 3320 – Duties of conciliator.

(1) Before expressing his findings, the conciliator shall give the parties an opportunity of fully stating their views.

(2) He shall draw up the terms of a compromise or, if none can be reached, a memorandum of non-conciliation.

(3) He shall communicate these documents to the parties.

Art. 3321 – Time-limit.

(1) The conciliator shall carry out his duties within the period of time laid down in the contact or, in the absence of any such limit, within six months from the date of his appointment.

(2) During this period, the patties may perform such acts as are necessary to preserve their rights.

(3) They may not bring their dispute before the court prior to the expiration of this period unless the conciliator has drawn up a memorandum of non-conciliation.

Art. 3322 – Powers of conciliator.

(1) The conciliator’s powers shall be interpreted restrictively.

(2) The parties shall not be bound by the terms of the compromise drawn up by the conciliator unless they have expressly undertaken in writing to confirm them.

Art. 3323 – Conciliator’s expenses and remuneration.

(1) The conciliator shall be refunded any reasonable expenses he has incurred in the discharge of his duties.

(2) He shall not be entitled to remuneration unless otherwise expressly agreed.

Art. 3324 – Application of rules regarding compromise.

The provisions of Section 1 of this Chapter shall in addition apply to a compromise reached through conciliation.

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