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Compromise is an agreement between opposing parties to settle a dispute or reach a settlement rather than continue the dispute or go to trial

As defined in the Louisiana Civil Code Art. 3071, “a compromise is a contract whereby the parties, through concessions made by one or more of them, settle a dispute or an uncertainty concerning an obligation or other legal relationship.”  

Furthermore, cases such as this one from Louisiana explain that compromise is “an agreement between two or more parties to avoid a lawsuit and amicably to settle their differences on such terms as they can agree.” 

[Last updated in June of 2021 by the Wex Definitions Team]