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Civil Law

Explanation of Article 300

Explanation of Article 300

This article addresses the statement of "settlement," which is: a contract that resolves the dispute, terminates the litigation, and leads to the discharge of the obligation. The article stipulates that the settlement occurs in two cases:

  • First: "Settlement upon acknowledgment," which is: the settlement is based on the debtor's acknowledgment of the debt. In this case, the settlement conclusively resolves the dispute and leads to the discharge of the obligation.

  • Second: "Settlement upon denial," which is: the settlement is based on the debtor's denial of the debt. In this case, the settlement conclusively resolves the dispute and leads to the discharge of the obligation, but it does not constitute an acknowledgment of the debt.

It is worth noting that the settlement must be "with the consent of both parties," meaning: the settlement must be agreed upon by both parties; it is not permissible for the settlement to occur without the consent of both parties.

This article is considered one of the most important articles related to settlement, as it clarifies how the obligation is discharged and enumerates its methods.

Related To

Article 300

  1. The statute of limitations shall be interrupted whenever grounds preventing initiation of the claim exist.

  2. Grounds for the interruption of the statute of limitations include bona fide negotiations between the parties which continue beyond the lapse of such period, or a moral impediment hindering such claim.