In legal terms, what does "settlement" imply?

In legal terms, "settlement" refers to a formal agreement that is reached by the parties involved in a dispute, which resolves the issues without proceeding to trial. This agreement can take many forms, such as financial compensation, changes in behavior, or other terms that satisfy both sides. Settlements are a common way to avoid the costs, time, and uncertainty associated with litigation and trial processes.

Reaching a settlement signifies that the parties have engaged in negotiation to find a mutually acceptable solution, often reflecting a compromise between the interests of both parties. Once an agreement is reached, it is typically documented in writing and may sometimes require court approval to be enforceable. This characteristic of settlements differentiates them from other legal outcomes, such as judgments or appellate decisions, which come as a result of formal litigation processes.