settlement agreement

Settlement agreements are used to reduce to writing an agreement reached by negotiation, mediation or conciliation. When properly drafted and executed, settlement agreements are binding contracts resolving all disputes between parties or a specific dispute between the parties.

Usage: As the parties were part of a long term working relationship, they entered into a settlement agreement to preserve their relationship and avoid litigation when resolving their disputes.

Related Words: contract; locus standi; negotiation; mediation; assignment.