contracts, civil law. An agreement between two or more persons, who for the purpose of preventing or putting an end to a law-suit, adjust their differences by mutual consent, in the manner which they agree on; in Louisiana this contract must be reduced to writing. Civil Code of Louis, 3038. 2. Transactions regulate only the differences which appear to be clearly comprehended in them by the intentions of the parties, whether they be explained in a general or particular manner, unless it be the necessary consequence of what is expressed; and they do not extend to differences which the parties, never intended to include in them. Id. 3040. 3. To transact, a man must have the capacity to dispose of the things included in the transaction.
Law Dictionary – Alternative Legal Definition
In the civil law. A transaction or compromise ia an agreement between two or more persons, who, for preventing or putting an end to a lawsuit adjust their differences 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. This contract must be reduced into writing. Civ. Code La. art. 3071. In common law. Whatever may be done by one person which affects another’s rights and out of which a cause of action may arise. “Transaction” is a broader term than “contract” A contract is a transaction, but a transaction is not necessarily a contract.