What defines a "settlement" in legal disputes?

A settlement in legal disputes is defined as an agreement reached by the parties involved to resolve their differences without the need for a trial. This process often facilitates a mutually acceptable resolution and can save both time and resources, as litigation can be lengthy and costly. Settlements can occur at any stage of the legal proceedings, even before a formal lawsuit is filed or after a trial has begun. The key aspect of a settlement is that it is a voluntary agreement that typically resolves all claims related to the dispute, allowing both parties to avoid the uncertainties of trial outcomes and further legal costs.

Other options represent different legal concepts: a trial verdict is the decision made by a judge or jury after examining evidence; a formal accusation made in court typically refers to a charge in a criminal matter; and a document outlining legal claims and defenses is usually associated with pleadings like complaints or answers, rather than resolving disputes.