32 principles on compromise, arbitration under the Civil Code


[1] A compromise is a contract.
[2] A compromise may be entered into to avoid litigation.
[3] A compromise may be entered into to put an end to pending litigation.
[4] Compromise must be fair.
[5] Expression of willingness to arbitrate by one or both parties shall suspend a civil action or proceeding.
[6] Offer by one of the parties to explore possibility of compromise prior to the commencement of the action shall suspend a civil action or proceeding.
[7] Sincere desire for compromise is a mitigating circumstance.
[8] Court approval is required for representation of incapacitated persons, absentees and estates of the deceased.
[9] Juridical persons may compromise only in the form and with the requisites which may be necessary to alienate their property.
[10] Civil liability arising from an offense may be compromised.
[11] Compromise cannot be entered into as regards the imposition of fines and imprisonment.
[12] Only objects definitely stated or necessary implied may be deemed to have been included in the compromise.
[13] A general renunciation of rights in a compromise is construed to refer only to those connected with the matters of the dispute.
[14] Compromise gives the effect of res judicata between the disputants.
[15] Judicial approval of the compromise is necessary for the execution of the same.
[16] A compromise in which there is mistake, fraud, violence, intimidation, undue influence, or falsity of documents, is subject to the provisions of Article 1330.

[17] The objection of mistake of fact against one party set up by another cannot be availed of if former has desisted from a litigated previously pending in court.
[18] If a general compromise has been made by the parties on all their differences, documents referring to one or more of the questions settled are not enough cause to rescind the compromise.
[19] If, however, such documents refer to all questions settled, the same may be enough to rescind the compromise.
[20] Furthermore, if said documents have been concealed by one of the parties, regardless of whether they refer to all questions or only some of the questions settled, shall be enough cause to rescind the compromise.
[21] Newly-discovered documents, concealed or not, may cause the annulment or rescission of the compromise only to that extent over which one of the parties has no right.
[22] Compromise made after a final judgment about which one or both of the parties are unaware may be rescinded.
[23] Ignorance of a judgment which may be revoked or set aside is not a valid ground for attacking a compromise.
[24] 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.
[25] Requisites for arbitration are the same with those for compromise.
[26] Provisions on compromise are applicable to cases of arbitration.
[27] Any stipulation that the arbitrators' award or decision shall be final, is valid, without prejudice to articles 2038, 2039, and 2040.
[28] One party cannot be given a right to choose more arbitrators than the other.
[29] The guidelines on the appointment of arbitrators shall be issued by the Highest Court.
[30] Compromise and arbitration are two different things.
[31] Authority to submit an issue to compromise is not authority to submit the same to arbitration.
[32] Authority to submit an issue to arbitration is not authority to submit the same to compromise. (Title XIV of the Civil Code)

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