A compromise offer can be withdrawn before adoption, but not after. If an agreement is reached in writing, either party may resign before signing. If judicial authorization is required, a party may terminate the agreement prior to court approval. The offer may be subject to certain conditions that must be met in order to reach a valid compromise. For example, a creditor creates a conditional offer when it sends a debt instrument for less than the total amount of a debt. When the debtor signs the note, he agrees to cancel part of the debt. If the debtor refuses to sign the note, the creditor`s offer is rejected. The offer is subject to the signature of the note by the debtor. An offer of compromise and comparison must be made within a reasonable time.
The acceptance of an offer of compromise must also be made within a reasonable time and under the conditions offered. However, the delay in acceptance does not matter if the person making the offer is not affected. Acceptance may be implicit or explicit. If it is based on a condition that proves to be unachievable, no settlement of accounts is possible. Disputes relating to family matters are often the subject of compromises and settlements. Increasingly, courts are encouraging and requiring parties to strive to reach agreement on divorce and custody issues before pursuing a problem through legal proceedings. In a family environment where problems are very personal and emotional, compromise and settlement offer a way to preserve a certain sense of the close relationship between the parties. Since the parties reach a final agreement together, family issues that are settled by compromise and comparison are generally more consensual than those settled by litigation. Compromises and settlement can also be used to resolve disputes with the INTERNAL REVENUE SERVICE (IRS). A taxpayer who owes money to the IRS can offer a compromise for the method or amount of its payment.
If the government accepts this offer of compromise, it will become a binding contract (47B C.J.S. Internal Revenue § 1064 ). Settlement of a dispute by mutual agreement in order to avoid legal action. As with any other treaty, a valid compromise and an agreement must be based on the quid pro quo. Everything that is exchanged by the parties, including money or property, is enough to support a compromise and agreement. When a debtor agrees to pay more than he considers due, the additional amount is taken into account in return for the payment of the debt. The resolution of family conflicts can also be considered a valuable consideration. The adequacy of the counterparty, however small or small, is generally not subject to judicial review. If the recital is not so unfair as to shock the conscience, the inadequacy of the counterpart does not justify the outrage of setting aside a compromise and an agreement. The terms of a transaction agreement do not have to be the same. A party may give up more than initially planned.
However, as long as the parties reach an agreement on the terms and the court finds the compromise fair, the settlement will be confirmed by the Tribunal. . . .