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BOOK FOUR
REPUBLIC ACT NO. 386 : AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE
PHILIPPINES BOOK IV : OBLIGATIONS AND CONTRACTS

Title XIV. - COMPROMISES AND ARBITRATIONS PHILIPPINE LAW DATABASE

CHAPTER 1 > COMPROMISES Civil Law

Commercial & Mercantile Law
Art. 2028. A compromise is a contract whereby the parties, by Criminal Law
making reciprocal concessions, avoid a litigation or put an end to
Labor Law
one already commenced. (1809a)
Legal Ethics & Practical Exercises
Political & International Law
Art. 2029. The court shall endeavor to persuade the litigants in a
civil case to agree upon some fair compromise. (n) Remedial Law
Tax Law
Art. 2030. Every civil action or proceeding shall be suspended:

(1) If willingness to discuss a possible compromise is expressed by CIVIL LAW

one or both parties; or Civil Code: Chapter 1 & 2

Civil Code: Book One
(2) If it appears that one of the parties, before the commencement Civil Code: Book Two
of the action or proceeding, offered to discuss a possible
Civil Code: Book Three
compromise but the other party refused the offer.
Civil Code: Book Four

The duration and terms of the suspension of the civil action or

proceeding and similar matters shall be governed by such
provisions of the rules of court as the Supreme Court shall
promulgate. Said rules of court shall likewise provide for the
appointment and duties of amicable compounders. (n)

Art. 2031. The courts may mitigate the damages to be paid by the
losing party who has shown a sincere desire for a compromise.
(n) KEYWORDS

Actual Damages (1)

Art. 2032. The court's approval is necessary in compromises
Agency (4)
entered into by guardians, parents, absentee's representatives,
and administrators or executors of decedent's estates. (1810a) Aleatory Contracts (4)
Antichresis (2)
Art. 2033. Juridical persons may compromise only in the form and Arbitrations (1)
with the requisites which may be necessary to alienate their Barter (1)
property. (1812a) Bonds (1)
Breach of Contract of Sale (1)
Art. 2034. There may be a compromise upon the civil liability
Capacity to Buy or Sell (1)
arising from an offense; but such compromise shall not
Chattel Mortgage (1)
extinguish the public action for the imposition of the legal
Classification of Credits (1)
penalty. (1813)
Commodatum (1)
Art. 2035. No compromise upon the following questions shall be Compromises (1)
valid: Conpensatory Damages (1)
 Contracts (9)
(1) The civil status of persons; Credits (4)
Damages (3)
(2) The validity of a marriage or a legal separation;
Deposit (4)
Different Kinds of Obligations (1)
(3) Any ground for legal separation;
Dissolution (1)

(4) Future support; Effect of Obligations (1)

Effects of Guaranty (1)
(5) The jurisdiction of courts; Essential Requisites of Contracts (1)
Estoppel (1)
(6) Future legitime. (1814a) Exchange (1)
Express Trusts (1)
Art. 2036. A compromise comprises only those objects which are
Extinguishment of Guaranty (1)
definitely stated therein, or which by necessary implication from
Extinguishment of Obligations (1)
its terms should be deemed to have been included in the same.
Extinguishment of Sales (1)

A general renunciation of rights is understood to refer only to Extra-contractual Obligations (2)

those that are connected with the dispute which was the subject Form of Contracts (1)
of the compromise. (1815) Form of the Contract (1)
Gambling (1)
Art. 2037. A compromise has upon the parties the effect and Guaranty (4)
authority of res judicata; but there shall be no execution except in Implied Trusts (1)
compliance with a judicial compromise. (1816)
Incorporeal Rights (1)
Inexistent Contracts (1)
Art. 2038. A compromise in which there is mistake, fraud,
Insurance (1)
violence, intimidation, undue influence, or falsity of documents, is
subject to the provisions of Article 1330 of this Code. Judicial Deposit (1)
Labor (1)
However, one of parties cannot set up a mistake of fact as against Lease (3)
the other if the latter, by virtue of the compromise, has Life Annuity (1)
withdrawn from a litigation already commenced. (1817a) Loan (3)
Mortgage (4)
Art. 2039. When the parties compromise generally on all
Mutuum (1)
differences which they might have with each other, the discovery
Natural Obligations (1)
of documents referring to one or more but not to all of the
Nature of Obligations (1)
questions settled shall not itself be a cause for annulment or
rescission of the compromise, unless said documents have been Nature of the Contract (1)
concealed by one of the parties. Obligation (1)
Obligations (8)
But the compromise may be annulled or rescinded if it refers only Obligations of the Vendee (1)
to one thing to which one of the parties has no right, as shown by Obligations of the Vendor (1)
the newly-discovered documents. (n) Partners (1)
Partnership (4)
Art. 2040. If after a litigation has been decided by a final
Pledge (4)
judgment, a compromise should be agreed upon, either or both
Preference of Credits (1)
parties being unaware of the existence of the final judgment, the
compromise may be rescinded. Quasi-contracts (1)
Quasi-delicts (1)
Ignorance of a judgment which may be revoked or set aside is not Reformation of Instruments (1)
a valid ground for attacking a compromise. (1819a) Requisites of Contracts (1)
Rescissible Contracts (1)
Art. 2041. If one of the parties fails or refuses to abide by the Rural Lands (1)
compromise, the other party may either enforce the compromise Sales (9)
or regard it as rescinded and insist upon his original demand. (n) Sequestration (1)
Thing Sold Has Been Lost (1)
KEYWORDS: COMPROMISES
Trusts (3)
Unenforceable Contracts (1)
Urban Lands (1)
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Void Contracts (1)
Voidable Contracts (1)
Voluntary Deposit (1)
Winding Up (1)
Work (1)