Reciprocal concessions – compulsory element of a settlement agreement

Abstract

The settlement agreement is an instrument of substantive law, with important intercalations in procedural law, with the aim of amicably preventing a potential dispute or terminating an existing dispute. In order to qualify a civil contract as a settlement agreement, the legislation in force and the doctrine provide certain preconditions and mandatory elements that such an instrument must present. Thus, the purpose of this article is to reveal the binding elements that represent the content of a settlement agreement. In order to elaborate an extensive study, only one of these elements shall be examined, namely the reciprocal concessions made by the parties in order to solve the dispute between them. Mutual concessions belong to the essence of the settlement agreement, as it shows that by solving the conflict amicably, both sides win, as they save time, resources and choose the actual way in which they settle the conflict. In this article we will analyze the concept of reciprocal concessions, the difference between reciprocal concessions and other legal institutions, such as recognition of the action or dismissing the case. Also, we will provide examples of concessions by analyzing the jurisprudence in this regard.