Explanation of Article 402
The article clarified the relative effect of the settlement contract, which is that its effect is limited to the rights included in the settlement contract and the resolution of the dispute therein, and not beyond that. This effect does not differ in the settlement contract from other contracts; however, this effect is more apparent in the settlement contract than in others because the terms of the settlement must be interpreted narrowly. Consequently, the relativity of the contract in terms of its subject must be confined to the rights included in the settlement and not beyond them. For example, if an heir settles with the rest of the heirs on an inheritance, the settlement is limited to the estate existing at the time of the settlement and does not include any other assets that may appear for the deceased thereafter.
Related To
Article 402
The effects of reconciliation shall be limited to the disputed rights which are settled by the reconciliation.