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Alenton, Enriquez, Masiga, Respicio, Ansaldo, Varon

Art. 2028. A compromise is a contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to one already commenced. CHARACTERISTICS:
2. 3. 4.


Consensual Reciprocal Nominate Onerous Accessory Binding to Parties

Essence of Compromise

Definition of Compromise


When Agreement is NOT REALLY a Compromise


Art. 2029. The court shall endeavor to persuade the litigants in a civil case to agree upon some fair compromise.
The RICHARD GORDON case: GR 134900, Sept. 1, 1998
In open court during the hearing, a civil settlement has been encouraged for a dignified exit of an achiever and smooth assumption of a successor, for a settlement still accords with Arts. 2028 and 2029 of the Civil Code, Article 2028 provides: A compromise is a contract whereby parties, by making reciprocal concessions, avoid a litigation or put and end to one already commenced. Article 2029 states: The court shall endeavor to persuade the litigants in a civil case to agree upon some fair compromise.

Under the Revised Rules of Court, this Article on suspension is reproduced substantially.
Motion to Dismiss Postponements


Offers to Arbitrate Not Included

(Mitigation Of Damages)

Art. 2032.The courts approval is necessary in compromises entered into by guardians, parents, absentees representatives, and administrators or executors of decedents estates. Art 2033. Juridical persons
1) An agent needs a special power to compromise. (Art 1878, CC) 2) If an attorney is not authorized by the client, he cannot compromise his clients claim. Unless, the client fails to repudiate promptly the act after knowing of it, in which case the client will be in estoppel.

may compromise only in the form and with the requisites which may be necessary to alienate their property.

3) Art 225 of the Family Code, does not give the widow the authority as the legal administratix to compromise the children under parental authority claims for indemnity arising from the from their fathers death.

RULES FOR COMPROMISE ENTERED INTO BY JURIDICAL PERSONS a. A corporation may compromise thru authority granted by the Board of Directors. b. The Municipal Council can also compromise provided that the legal requirements for the alienation of property are complied with, and provided further that the provincial approves the compromises.

Art 2035. No compromise upon the following questions:

(1)The civil status of persons; (2)The validity of a marriage or a legal separation; (3) Any ground for legal separation; (4) Future support (5)The jurisdiction of courts; (6) Future legitime.


A petition for legal separation may be filed on any of the following grounds: (1) Repeated physical violence or grossly abusive conduct directed against the petitioner, a common child, or a child of the petitioner;

(2) Physical violence or moral pressure to compel the petitioner to change religious or political affiliation;
(3) Attempt of respondent to corrupt or induce the petitioner, a common child, or a child of the petitioner, to engage in prostitution, or connivance in such corruption or inducement; (4) Final judgment sentencing the respondent to imprisonment of more than six years, even if pardoned; (5) Drug addiction or habitual alcoholism of the respondent; (6) Lesbianism or homosexuality of the respondent; (7) Contracting by the respondent of a subsequent bigamous marriage, whether in the Philippines or abroad; (8) Sexual infidelity or perversion; (9) Attempt by the respondent against the life of the petitioner; or (10) Abandonment of petitioner by respondent without justifiable cause for more than one year. For purposes of this Article, the term "child" shall include a child by nature or by adoption.

Art. 2039. When the parties compromise generally on all differences which they might have with each other, the discovery of documents referring to one or more but not to all of the questions settled shall not itself be a cause for annulment or rescission of the compromise, unless said documents have been concealed by one of the parties. But the compromise may be annulled or rescinded if it refers only to one thing to which one of the parties has no right, as shown by the newly-discovered documents.

Effect of Discovery of Documents Referring to Matters Compromised Upon

(a) The first paragraph refers to a compromise on ALL differences; the second, to a compromise on one thing. The effect of the discovery of the documents is set forth in the Article.

(1) Compromise Entered Into in Ignorance of a Final Judgment (2) Reason for Allowing a Rescission

3) Effect of Appeal

Art. 2040. If after a litigation has been decided by a final judgment, a compromise should be agreed upon, either or both parties being unaware of the existence of the final judgment, the compromise may be rescinded. Ignorance of a judgment which may be revoked or set aside is not a valid ground for attacking a compromise.

(1) Effect if Compromise Agreement Is Not Fulfilled

(a) enforce the compromise;

(2) No Necessity for Judicial Rescission

Under this Article, there is no necessity for a judicial declaration of rescission, for the party aggrieved may regard the compromise agreement as already rescinded. (Leonor v. Sycip, L-14220, Apr. 29, 1961).

(3) No Rescission After Benefits are Enjoyed

Art. 2041. If one of the parties fails or refuses to abide by the compromise, the other party may either enforce the compromise or regard it as rescinded and insist upon his original demand.


Art. 2042. The same persons who may enter into a compromise may submit their controversies to one or more arbitrators for decision.
Definition: Arbitration is the process whereby by mutual agreement a third party decides a dispute between two persons.
Arbitration vs. Compromise

In Arbitration, a third party gives the solution; in compromise, the decision is arrived at by the parties concerned.

Art. 2044. Any stipulation that the arbitrators award or decision shall be final, is valid, without prejudice to Articles 2038, 2039, and 2040.
Arbitration before Suit Judicial Review in Arbitration Filing Fee vest Jurisdiction Decision within 10 days Inclusion of third parties Finality of Arbitral Award Decision is FINAL except: Vitiated Consent Parties previously agreed that to be binding it must be accepted by them, and they have not accepted.

Art. 2045. Any clause giving one of the parties power to choose more arbitrators than the other is void and of no effect.

Art. 2046. The appointment of arbitrators and the procedure for arbitration shall be governed by the provisions of such rules of court as the Supreme Court shall promulgate.