1. A settlement in respect of rights is valid whether the defendant admits them, denies them, or remains silent and expresses neither admission nor denial. 2. If the settlement occurs in the case of an admission for a specific consideration paid by the admitting party, it shall be deemed a sale, and if it is for a usufruct, it shall be deemed a lease. 3. If the settlement occurs upon denial or silence, it is considered a commutative transaction with respect to the claimant, and with respect to the defendant a redemption from the oath and a termination of the dispute.
Interpretation and application must be checked against the official text and current version.