Verses 43-55:
Jacob’s angry speech had little effect upon Laban, as evidenced by his words in verse 43. He claimed legal right to all that Jacob had: the two daughters who were Jacob’s wives, their maidservants, the children born to Jacob and his wives, the livestock which Jacob claimed - all these belonged to Laban by the custom of the times. In this claim, Laban acknowledged that by doing anything to harm these, he would only be hurting himself. So, he proposed that there be a covenant "made" or "cut" between him and Jacob, a proposal which Jacob readily accepted.
Jacob found a stone, probably a large, elongated shape, and set it up as a pillar, matzebah, or monument to the covenant about to be made. He then instructed the kinsmen to gather stones and make a "heap," gal, from galal meaning to roll (the word from which Gilgal comes, see Jos 5:9). This "heap" was probably a circular cairn, to serve as altar, table, and witness. There on this "heap" Jacob and Laban ratified the covenant with a solemn banquet, in keeping with the custom of the time. Both men acknowledged the terms of the agreement as binding not only upon themselves but upon their posterity.
Laban gave a Chaldaic name to the monument: Jaegar-sahadutha, meaning "heap of testimony" in the language of Mesopotamia. Jacob called the place "Galeed," a compound of gal and ed, meaning "heap of witness" in the Hebrew. Jacob also called the place "Mizpah," or "watch-tower," from tsaphah, "to watch." This later was the site of a town in Gilead (Jg 10:17; 11:11, 19, 34). The reason for this latter name: a solemn affirmation that Jehovah Himself would watch over both Jacob and Laban and enforce the terms of the agreement.
The covenant between Jacob and Laban provided that: (1) neither Laban nor Jacob (nor their descendants) would cross over this boundary with hostile intent against the other; and (2) Jacob would deal kindly and justly with the daughters of Laban; and (3) that Jacob would not take other wives either in the place of or in addition to Laban’s daughters (this would assure their inheritance rights). Jacob and Laban ratified the covenant with a solemn vow: Laban to the God of Nahor and his father; and Jacob by the fear and reverence of his father Isaac. The transaction was concluded with a banquet. Early the next morning, Laban said farewell to his daughters and grandchildren, pronounced a benediction upon them, and turned eastward to Mesopotamia. In parting, it is implied that there was reconciliation at last between Laban and the family of Jacob.