What Is a Settlement?
A settlement is a process in which two or more parties come to an agreement on the terms of a dispute. This can be done through negotiation, mediation, arbitration, or litigation. The goal of any settlement is to resolve the dispute without going to court and having a judge decide the outcome. Settlements are often used when both sides agree that it would be better for them to settle out of court rather than risk losing at trial.
Settlements can involve money being exchanged between parties as part of the resolution, but they don’t always have to include this element. In some cases, one party may simply agree not to pursue legal action against another party if certain conditions are met (such as agreeing not to speak publicly about an issue). Other settlements might involve changes in behavior from one side or even apologies being issued by either side involved in the dispute.