- 578. Definition of compromise contract
(1) A compromise contract is a contract which is entered into in order to render a contestable or ambiguous legal relationship incontestable by way of mutual concession. Amongst other things, uncertainty as to whether a claim can be enforced is also deemed to be ambiguity.
(2) It is presumed that the parties will waive their claims as a result of the compromise contract and acquire new rights on the basis of the compromise contract.
- 579. Validity of rights of third parties
A compromise contract does not affect the rights of third parties which arise from contestable or ambiguous legal relationships.