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Book 2 · Law of obligations  ›  Title 21 · Settlement › Section 779

Concept of settlement; mistake as to the basis of the settlement

(1) A contract by which a dispute or uncertainty of the parties with regard to a legal relationship is removed by way of mutual concession (settlement) is ineffective if the facts and circumstances on which the contract, by its contents, is premised do not correspond to reality and the dispute or uncertainty would not have occurred if the factual situation had been known.

(2) It is equivalent to uncertainty about a legal relationship if the realisation of a claim is uncertain.

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