LAW RELATING TO COMPROMISE AND SETTLEMENT

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As per Termes de la Ley, “compromise is a mutual promise of two or more parties that are at controversy”. As per Bouvier it is “an agreement between two or more persons, who, to avoid a law suit, amicably settle their differences, on such terms as they can agree upon. ”

The word “compromise” implies some element of accommodation on each side. It is not apt to describe total surrender. A compromise is always bilateral and means mutual adjustment.

The word “compromise” denotes an agreement between the parties to a dispute to settle it out of court. The Dictionary meaning of the word is a settlement of differences by mutual concession. Thus it is the mutual act of the parties to the suit to settle the dispute between them concerned in the suit by agreement.