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Chapter Law Content

Title: Civil Code CH
Category: Ministry of Justice(法務部)
Part Ⅱ Obligations
Chapter II Particular Kinds Of Obligations
Section 23 - Compromise And Settlement
Article 736
A compromise and settlement is a contract whereby the parties by making mutual concessions terminate an existing dispute or prevent the occurrence of a future dispute.
Article 737
The effect of a compromise and settlement is to extinguish the rights abandoned by each party and to secure to each party those rights which are specified in the compromise and settlement.
Article 738
A compromise and settlement shall not be revoked for mistake, except in any of the following cases:
(1) If the compromise and settlement is based on documents which are afterwards discovered to be forged or altered, provided that the forgery or alteration be such that the party concerned would not have agreed to compromise and settlement if he had known of the forgery or alteration.
(2) If the object of the compromise and settlement had been settled by a non-appealable judgment of the court, of which the parties or one of them had no knowledge at the time of the compromise and settlement.
(3) If one of the parties was acting under a mistake as to the qualification of the other party or as to the point in dispute, which was essential in the case.