(1) If a litigation representative agrees to the compromise or settlement of any matter in dispute in a proceeding, the litigation representative must apply to the Court for approval of the agreement.
(2) If the Court approves the agreement, the agreement is binding on the person by or for whom it was made as if:
(a) the person were not under a legal incapacity; and
(b) the litigation representative had made the agreement as the person's agent.
(3) The Court may, as a condition of approval, require that any money or other property payable for the benefit of a person under a legal incapacity be dealt with by way of a settlement, or in any other way that the Court considers appropriate.
Note: The Court may give approval subject to conditions--see rule 1.33.
(4) If the Court does not approve the agreement, the agreement is not binding on the person under a legal incapacity.