Essense of Katarungan Pambarangay

     The essence of the Katarungang Pambarangay Law is the amicable settlement of disputes wherein the disputing parties are encouraged to make mutual concession to obtain a peaceful resolution of the dispute without formal adjudication thereof. The important consideration in amicable settlement is the extent to which the parties are willing to compromise their respective claims against each other within the limits imposed by law, morals, good customs, public order and public policy. The amicable settlement is in the nature of a contract between the parties, except that by express provision of law, it acquires the force and effect of a judgment of  court upon the expiration of ten days from date thereof. The provisions of the New Civil code on contracts are applicable to an amicable settlement insofar as they are not inconsistent with the provisions of RA. 7160. Accordingly, the parties to an amicable settlement re free to establish such stipulations, clauses, terms and conditions they may deem convenient subject to the limitations of Article 1306, New Civil Code.