Settlement
An agreement that ends a dispute without a court deciding it.
Definition
A settlement is an agreement reached between the parties to resolve a dispute without (or sometimes during) court proceedings. Settlements are usually recorded in a signed agreement and may include a confidentiality clause. A "Tomlin order" in England and Wales records the terms of a settlement as a court order, making them enforceable.
In practice
A settlement agreed in writing is usually binding immediately. Do not make oral promises about settling without confirming them in writing.