Explanation of Article 399
The article clarifies that reconciliation does not create a new right for any of the parties involved in the reconciliation regarding the rights included in the reconciliation; meaning that the effect of reconciliation reveals the right rather than creating it. This means that the right obtained by the reconciled party through reconciliation is based on its original source and not on the reconciliation itself. For instance, if two individuals purchase two goods and then dispute over which good each is entitled to, and then reconcile by determining which good belongs to each, each is considered the owner of their respective good not by reconciliation but by the contract of sale. Several consequences arise from the fact that reconciliation reveals rather than creates the right, including: 1- The reconciled party does not receive the right from the other reconciled party nor is a successor to it. 2- The reconciled party does not guarantee the right obtained by the other reconciled party. 3- The guarantees of the right subject to reconciliation remain unchanged; for example, if a creditor reconciles with their debtor to waive part of the debt in exchange for the debtor paying the remainder, the guarantees that were on the debt remain on the remaining part. 4- If a property is obtained by one of the disputants through reconciliation, there is no preemption in it. The article also clarifies that the revealing effect of reconciliation is only on the right subject to reconciliation, whereas the compensation for reconciliation, which is the undisputed right, has a creating rather than revealing effect. For example, if two parties reconcile over a disputed land such that the land is awarded to one in exchange for money or cars to the other, the effect of reconciliation regarding the land is revealing, while regarding the money or cars it is creating or transferring the right; and it is subject to the rules of exchange according to the nature of the right and its compensation.
Related To
Article 399
Reconciliation shall not create a new right for any of the parties with respect to the rights subject of reconciliation. However, a consideration for reconciliation relating to other than such rights shall create a right which shall be subject to the provisions of commutative contracts as per the nature of the consideration and the relinquished right.