Legal Definitions - compromissum

A compromissum refers to a formal agreement between parties involved in a dispute to resolve their conflict through arbitration, rather than pursuing a lawsuit in a traditional court system. It signifies a mutual commitment to present their case to an impartial third party, known as an arbitrator, who will then hear evidence and arguments from both sides and issue a binding decision.

• Example 1: Commercial Contract Dispute

  Two technology companies, InnovateTech and GlobalConnect, have a disagreement regarding the terms of a software licensing agreement. InnovateTech believes GlobalConnect failed to meet certain performance metrics, leading to financial losses. Instead of initiating a costly and lengthy court battle, both companies sign a written agreement stating they will submit their dispute to a neutral, independent technology arbitrator. This agreement, outlining the scope of the arbitration and their commitment to abide by the arbitrator's decision, constitutes a compromissum.

• Example 2: Construction Project Disagreement

  A homeowner and a general contractor are in dispute over unexpected costs and delays on a home renovation project. The homeowner claims the contractor exceeded the budget without proper authorization, while the contractor attributes the delays to unforeseen structural issues. To avoid litigation, they formally agree to present their arguments, invoices, and project timelines to a certified construction arbitrator. Their signed agreement to use this specific arbitration process to resolve their differences is an example of a compromissum.