What is meant by "settlement" in legal terms?

In legal terms, "settlement" refers to an agreement reached between parties to resolve a dispute prior to going to trial. This typically involves negotiations where both sides come together to discuss the terms of the resolution, often resulting in a mutual agreement that satisfies the parties involved without the need for a court ruling. Settlements are common in civil cases, as they can save time, reduce costs, and allow both parties to avoid the uncertainties and potential adversities associated with a trial.

Settlement agreements can take various forms, including monetary compensation, specific performance, or other solutions that are agreeable to both parties. The primary advantage of reaching a settlement is that it provides a level of control over the outcome, enabling the parties to negotiate terms that the court may not have awarded or considered if the case had proceeded to trial.