Warning
Info
Warning
Info
Simple English definitions for legal terms
compromise and settlement
Read a random definition: contestation of suit
A quick definition of compromise and settlement:
Compromise and Settlement: An agreement between two or more people to solve a problem or argument they have. Each person gives up something to make the other person happy. It can also mean when someone pays part of what they owe and the other person agrees not to ask for the rest.
A more thorough explanation:
Compromise and settlement refer to an agreement between two or more parties to resolve a dispute or claim. In this agreement, each party gives up something in order to reach a resolution.
For example, if two people are in a legal dispute over a property line, they may compromise and settle by agreeing to split the disputed area evenly between them. This way, both parties give up some of their claim in order to reach a resolution.
Another example of compromise and settlement is when a debtor makes a partial payment to a creditor, and the creditor agrees not to pursue the rest of the debt. This is known as a compromise and settlement agreement.
Overall, compromise and settlement are important tools for resolving disputes and claims without the need for lengthy and costly legal proceedings.