What is a settlement?

• A. An injunction.
• B. A written document asking the Court to decide a contested issue.
• C. An agreement that resolves a dispute or conflict.
• D. A private trial with three arbitrators.

Answer: (C)

A settlement is an agreement reached by the parties that ends a dispute by mutual terms. It is a voluntary deal that resolves the conflict without requiring the court to issue a decision after a full trial. The terms typically specify what each side will do (or pay) and may include a release of claims, confidentiality, or other conditions. This makes it different from an injunction, which is a court order forcing or forbidding conduct; and from a request for the court to decide the issue, which seeks a judicial decision rather than an agreement. It’s also not arbitration, which is a separate dispute-resolution process where a neutral third party (or panel) renders a binding decision after a hearing. Settlements can occur before or during litigation and aim to provide a practical, enforceable resolution without the need for a trial.