What will happen to our compromise agreement? Morry Clearly, the very purpose of a compromise agreement is to avoid litigation before the courts where the opposing parties would settle their disputes by mutual agreement, without judicial intervention, or to stop a dispute already initiated. If a compromise agreement has already been reached and one of the parties refuses to honour its commitment, the other party may either disobey the agreement and appeal to the courts, or execute the agreement already concluded in the contract. This is expressly provided for in Section 2041 of the New Civil Code of the Philippines, to say this: As such, the parties respectfully request the National Labor Relations Commission to dismiss the case as closed and/or final by prejudice. . . .