LUBECA MARINE MANAGEMENT V. ALCANTARA (CIVIL)

Article 1306 of the Civil Code of the Philippines provides that contracting parties may agree to such stipulations, clauses, terms, and conditions as they may deem convenient as long as they are not contrary to law, morals, good customs, public order, or public policy. A COMPROMISE AGREEMENT is a contract whereby the parties make reciprocal concessions to resolve their differences and put and end to litigation. It is an accepted, even desirable and encouraged practice in courts of law and administrative tribunals.

Finding the above Compromise Agreement to be validly executed and not contrary to law, morals, good customs, public order, or public policy, we therefore approve the same.