Explanation of Article 401
The article clarified the effect of reconciliation, which is the termination of rights and claims that either of the parties to the reconciliation has waived; neither they nor their heirs can revert to it. This results in two effects:
The first effect: The party to the reconciliation waives their claim; they cannot revert to it. For example, if a creditor reconciles by waiving part of the disputed debt in exchange for the debtor paying the remainder, the creditor cannot revert to what they have waived.
The second effect: The right is established and becomes exclusive to the other party to the reconciliation. It is worth noting that the effect of this on the reconciliation contract does not prevent the application of general rules to this contract; the contract can be annulled if it is associated with a defect in consent, and the reconciliation contract can be conditional on a suspensive or resolutory condition. There can be an agreement on a penalty clause if the party to the reconciliation breaches their reciprocal obligation, and either party to the reconciliation may request either specific performance of the reconciliation or its annulment, with compensation if warranted. The court may refuse the request for annulment if the breach by the party to the reconciliation is of minor importance and may grant the breaching party time to fulfill their obligation according to established rules.
Related To
Article 401
A reconciliation contract shall result in the extinguishment of the rights and claims relinquished by either party; the parties to the reconciliation or their heirs may not renege on the contract.