Settlement Agreement

For other uses of settlement, including legal uses, see Settlement. In law there are several main meanings of the word settlement. The most common meaning refers to when the parties to a dispute (both disputes that are being litigated before the courts, and disputes where court action has not been started) reach an agreement as to the case, which is said to 'settle' the claim.
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In a civil lawsuit, the document that spells out the terms of an out-of-court compromise.