Explanation of Article 394
The subject of the settlement must meet the general conditions required for the subject of the contract; it must be inherently possible, not contrary to public order, and must be specified or specifiable. Accordingly, the article stipulates that the right being settled in the settlement contract must be one for which compensation can be legitimately exchanged according to public order. Thus, settlement is not valid for matters that cannot be transacted by nature or by law, such as settlement in matters related to personal status, like the denial or affirmation of paternity, the validity or invalidity of marriage, guardianship, or custodianship, or regarding penalties and punishments and all matters related to public order. It is permissible to settle on financial rights arising from personal status, such as a divorced woman waiving her right to alimony during the waiting period, or someone entitled to alimony waiving their right for a specific period. Similarly, settlement on financial rights arising from a crime, such as settlement on the right to civil compensation under liability for harmful acts, and the like, is permissible.
Related To
Article 394
The subject of a reconciliation shall be a thing for which a consideration may be collected.