What is the meaning of settlement in legal terms?

Settlement in legal terms refers to an agreement between parties to resolve a dispute without going to trial. This process allows the parties involved to come to a resolution that is mutually acceptable, often involving some form of compromise, rather than leaving the outcome in the hands of a judge or jury. Settlements can occur at any stage of litigation, including before a case is formally filed, during the discovery process, or even after a trial has begun.

The essence of a settlement is that it provides a way to conclude a dispute efficiently, saving time and resources for both parties. In many cases, it can offer more predictability than a trial, where the results can be uncertain. By reaching a settlement, both parties typically agree to specific terms, which may include financial compensation or changes in behavior, thereby achieving a resolution that meets their respective needs without further litigation.