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Al-Majallah al-Ahkam al-‘Adaliyyah
Book 12, Chapter 4
Chapter 4: Fundamental Conditions Governing Settlement and Release.
Section 1: Fundamental Conditions Governing Settlement.
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When the settlement is complete, one of the two parties may not go back
therefrom. BY agreeing to the settlement, the plaintiff becomes entitled
to the consideration for the settlement. He no longer possess any right
to bring an action. The defendant may not claim the return of the consideration
for the settlement from him.
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In the event of the death of one of the two contracting parties, the heirs
may not cancel the settlement.
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If the settlement takes the form of giving something in satisfaction, the
two parties thereto may cancel and rescind the settlement of their own
accord. If the settlement does not take such form, but consists of giving
up certain rights any cancellation thereof is invalid. (See Article 51.)
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If a contract of settlement is concluded whereby a payment is made in order
to avoid swearing an oath, the plaintiff is considered to have relinquished
his right of bringing an action, and he cannot have the defendant put on
his oath.
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If the consideration for the settlement is destroyed in whole or part before
it has been handed over to the plaintiff, and such consideration is a thing
which is specified, it is considered to be in the nature of a thing seized
by someone entitled thereto. That is to say, if a settlement is made by
way of admission, the plaintiff may claim the whole or part of the subject
matter of the settlement from the defendant. If the settlement is made
by way of denial or silence, the plaintiff may proceed with his action.
(See Articles 1548 and 1550.) If the consideration for the settlement is
a debt that is to say, consists of things which are not specified, such
as so many piastres, the settlement is not thereby affected, and the plaintiff
is entitled to receive from the defendant an amount equivalent to the portion
lost.
Section 2: Fundamental Conditions Governing Release.
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If any person states that he has no claim against or dispute with some
other person, or that he is not entitled to anything from him, or that
he has finished or given up a claim he had against him, or that he is no
longer entitled to anything from him, or that he has received complete
satisfaction from him, he is considered to have released such person.
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If any person releases any other person from any obligation, such obligation
ceases to exist and he can no longer make any claim in connection therewith.
( See Article 51.)
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A release does not extend to anything happening in future. That is to say,
if one person releases another, any rights antecedent to the release cease
to exist. Such person may, however, bring an action with regard to rights
which accrue after the release.
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If any person releases any other person from an action relating to a particular
matter, such release is a special release and no action will be heard with
regard to that matter. He may, however, bring an action with regard to
any other matter.
Example: A releases B from an action with regard to a house. No action
will be heard concerning such house. An action, however, will be heard
relating to a farm and similar matters.
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If any person states that he has released any other person from all actions
or that he has no claim in respect to him, such release is general, and
he may not bring an action in respect to any right which accrued prior
to the release, to the extent that no action relating to a right accruing
by reason of a contract of guarantee will be heard. Thus, if a person brings
an action alleging that another person was surety for some third person,
the action will not be heard. Nor may such person allege that some other
person was surety for some person prior to that person's release. (See
Article 662.)
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If a person sells property to some other person and receives the price
and releases the purchaser from all actions relating to the thing sold,
and the purchaser likewise releases the vendor from all actions with regard
to the price and a document is drawn up between them on these lines, and
the thing sold is seized by someone entitled thereto, the release ceases
to be of any effect and the purchaser may claim the return of the price
from the vendor. (See Article 52.)
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The persons who are released must be known and designated. Consequently,
if any person states that he has released all persons who are in his debt
or that he has no claim upon any person whatsoever,such release is invalid.
But if he states that he has released the people of a certain place and
people of such place and the number thereof are definitely known, the release
is valid.
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A release is not dependent upon acceptance. but if the release is disclaimed
it is of no effect. Thus, if one person releases another there is no need
for the latter to accept. But if at the meeting where the release is made,
such person states that he refuses to accept the release, such release
is of no effect. If a person disclaims a release after having accepted
it, it is of no effect. Again, if a person in whose favour a transfer of
debt has been made releases the transferee, or a creditor releases a surety,
or the transferee, or the surety disclaims the release, such release continues
to be effective.
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A person who is dead may validly be released from his debts.
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If a person releases one of his heirs from his debts during the course
of a mortal sickness, such release in not valid and executory. If he releases
a person who is not his heir from his debts, however, such release is effective
as regards a third of his property.
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If a person whose estate is overwhelmed by debts releases a person who
is indebted to him during the course of a mortal sickness, such release
is invalid and not executory.
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