Transaction

An agreement between two or more persons, who for the purpose of preventing or putting an end to a law-suit, adjust their differences by mutual consent, in the manner which they agree on; in Louisiana this contract must be reduced to writing.

Transactions regulate only the differences which appear to be clearly comprehended in them by the intentions of the parties, whether they be explained in a general or particular manner, unless it be the necessary consequence of what is expressed; and they do not extend to differences which the parties, never intended to include in them.

To transact, a man must have the capacity to dispose of the things included in the transaction. In the common law this is called a compromise.
   

This entry contains material from Bouvier's Legal Dictionary, a work published in the 1850's.