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TRANSACTION Definition & Legal Meaning

Definition & Citations:

In the civil law. A transaction or compromise is an agreement between two or more persons, who, for preventing or putting an end to a lawsuit, adjust their differences by mutual consent, in the manner which they agree on, and which every one of them prefers to the hope of gaining, balanced by the danger of losing. This contract must be reduced into writing. Civ. Code La. art. 3071. In common law. Whatever may be done by one person which affects another’s rights, and out of which a cause of action may arise. Scarborough v. Smith, 18 Kan. 406. “Transaction” is a broader term than “contract.” A contract is a transaction, but a transaction is not necessarily a contract. See Ter Kuile v. Marsland, 81 Ilun, 420, 31 N. Y. Supp. 5; Xenia Branch Bank v. Lee, 7 Abb. Prac. (N. Y.) 372; Roberts v. Donovan, 70 Cal. 113, 11 Pac. 599. TRANSCRIPT 1167 TRANSIEN


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