An arrangement arrived at, either in court or out of court, for settling a dispute upon what appears to the parties to be equitable terms, having regard to the uncertainty they are in regarding the facts, or the law and the facts together. Colburn v. Groton, 66 N. H. 151, 28 Atl. 95, 22 L. R. A. 768; Tteitschke v. Grain Co., 10 Neb. 358 6 N. W. 427; Attrill v. Patterson, 58 Md. 226; Bank v. McGeoch, 92 Wis. 286, 66 N. W. 606; Rivers v. Blom, 163 Mo. 442, 63 8. W. 812. An agreement between two or more persons, who, for preventing or .putting an end to a lawsuit, adjust their difficulties by mutual consent in the manner which they agree on, and which every one of them prefers to the hope of gaining, balanced by the danger of losing. Sharp v. Knox, 4 La. 456. ln the civil law. An agreement whereby two or more persons mutually bind themselves to refer their legal dispute to the decision of a designated third person, who is termed “umpire” or “arbitrator.” Dig. 4, 8; Mackeld. Rom. Law, f 471. Compromissarii sunt judices. Jenk. Cent. 128. Arbitrators are judges.
Law Dictionary – Alternative Legal Definition
contracts. An agreement between two or more persons, who, to avoid a lawsuit, amicably settle their differences, on such terms as they can agree upon. Vide Com. Dig. App. tit. Compromise. 2. It will be proper to consider, 1. by whom the compromise must be made; 2. its form; 3. the subject of the compromise; 4. its effects. 3. It must be made by a person having a right and capacity to enter into the contract, and carry out his part of it, or by one having lawful authority from such person. 4. The compromise may be by parol or in writing, and the writing may be under seal or not: though as a general rule a partner cannot bind his copartner by deed, unless expressly authorized, yet it would seem that a compromise with the principal is an act which a partner may do in behalf of his copartners, and that, though under seal, it would conclude the firm. 5. The compromise may relate to a civil claim, either as a matter of contract, or for a tort, but it must be of something uncertain; for if the debt be certain and undisputed, a payment of a part will not, of itself, discharge the whole. A claim connected with a criminal charge cannot be compromised. 6. The compromise puts an end to the suit, if it be proceeding, and bars any Suit which may afterwards be instituted. It has the effect of res judicata. 7. In the civil law, a compromise is an agreement between two or more persons, who, wishing to settle their disputes, refer the matter, in controversy to arbitrators, who are so called because those who choose them give them full powers to arbitrate and decide what shall appear just and reasonable, to put an end -to the differences of which they are made the judges.