Dading
Compromise
A compromise is an agreement whereby the parties terminate or avert an existing or imminent dispute by making mutual concessions.
A compromise is a special type of agreement governed by Article 7:900 et seq. of the Dutch Civil Code. The parties thereby undertake to resolve uncertainty or a dispute through the making of reciprocal concessions, without the need for a court ruling.
A compromise is relevant in that it enables the parties to avoid proceedings and thereby limit the expenditure of time and costs as well as the attendant uncertainty. A compromise that meets the statutory requirements may have the same binding effect as a judgment, particularly where it has been executed in notarial form.
In practice, compromises are frequently employed in civil disputes, such as employment conflicts, contractual matters or inheritance issues, in order to achieve an amicable and final settlement.
“The parties concluded a compromise to definitively settle the dispute over the amount of damages.”
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