Compromise under the Civil Code

A compromise is a contract where parties adjust their difficulties in the manner they have agreed upon, disregarding the possible gain in litigation and keeping in mind that such gain is balanced by the danger of losing. To be binding, the compromise must be shown to have been voluntarily, freely and intelligently executed by the parties, who had full knowledge of the judgment. Furthermore, it must not be contrary to law, morals, good customs and public policy.

Alburo Law
March 13, 2026

Compromise under the Civil Code

A compromise is a contract where parties adjust their difficulties in the manner they have agreed upon, disregarding the possible gain in litigation and keeping in mind that such gain is balanced by the danger of losing. To be binding, the compromise must be shown to have been voluntarily, freely and intelligently executed by the parties, who had full knowledge of the judgment. Furthermore, it must not be contrary to law, morals, good customs and public policy.

Are there matters that cannot be the subject of a compromise?

Yes. Article 2035 of the New Civil Code provides that no compromise upon the following questions shall be valid:

(1) The civil status of persons;

(2) The validity of a marriage or a legal separation;

(3) Any ground for legal separation;

(4) Future support;

(5) The jurisdiction of courts; and

(6) Future legitime

The Supreme Court Decides: A strict and rigid application of the rules which would result in technicalities that tend to frustrate rather than promote substantial justice must be avoided.

The Supreme Court clarified that the requirement of indicating the material dates in the petition is separate from the requirement that the petition be timely filed, as both must be complied with.

The Supreme Court Decides: Procedural rules are mere tools to facilitate the

attainment of justice. As such, a strict and rigid application of the rules which would result in technicalities that tend to frustrate rather than promote substantial justice must be avoided.

Why choose ALBURO LAW?

Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

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