Chapter First: General Provisions

Article 1042

Art. 1042 - The transaction has the effect of definitively extinguishing the rights and claims with respect to which it has been made and of ensuring to each of the parties the ownership of the things that have been delivered to them or the rights that have been recognized to them by the other party. A transaction on a debt, in consideration of the payment of a part of the sum due, is equivalent to a waiver of the remainder and discharges the debtor.

Article 1043

Art. 1043 - The parties owe each other mutual warranty of the things they give to each other as settlement of the dispute. When the party to which the thing in dispute has been delivered by effect of the settlement is evicted from it or discovers a defect that renders it unfit for use, there is occasion for total or partial resolution or for an action for reduction of price under the conditions established for sale. When the settlement consists of the concession for a time of the enjoyment of a thing, the warranty that the parties owe each other is that of a lease of things.

Article 1044

Art. 1044 - The transaction must be understood strictly, and whatever its terms may be, it only applies to the disputes or rights to which it relates.

Article 1045

Art. 1045 - If the person who has settled a right they had in their own right, or by virtue of a specific cause, subsequently acquires the same right from another person or a different cause, they are not, with regard to the newly acquired right, bound by the previous transaction.

Article 1046

Art. 1046 - When one of the parties does not fulfill the commitments it has made in the settlement, the other party may pursue execution of the contract, if it is possible, and, failing that, demand its resolution, without prejudice to its right to damages in both cases.