Contract of settlement

(1) A public-law contract within the meaning of section 53(1), second sentence, by which an uncertainty existing on a reasonable assessment of the facts or the legal position is removed by mutual concession (settlement), may be concluded where the authority, in the exercise of due discretion, considers the conclusion of the settlement expedient for removing the uncertainty.
(2) Section 53(2) does not apply in the case of subsection (1).