Legal Definitions - agreed decree

Agreed Decree

An agreed decree is a formal court order or judgment that incorporates a settlement reached by the parties involved in a lawsuit. Rather than the court making a decision after a trial, the parties negotiate and agree on the terms to resolve their dispute. The court then reviews and approves this agreement, issuing it as a binding decree. This type of decree carries the same legal weight as a judgment issued after a full trial, but it reflects the parties' mutual consent.

Here are some examples:

• Divorce Settlement: A couple undergoing a divorce reaches a comprehensive agreement on all aspects of their separation, including child custody, visitation schedules, division of marital property, and spousal support. Instead of proceeding to a contested trial where a judge would decide these matters, they present their mutually agreed-upon terms to the court. The court then reviews the agreement and, finding it fair and lawful, issues an agreed decree of divorce. This decree legally formalizes their settlement, making all its provisions binding on both parties.

• Business Contract Dispute: Two companies are engaged in a lawsuit over a breach of contract. After extensive negotiations, they agree on a resolution that includes a specific payment amount from one company to the other, a revised schedule for future deliveries, and a mutual release of all further claims related to the contract. They submit this detailed settlement agreement to the court. The court then issues an agreed decree, which legally binds both companies to the terms of their settlement, preventing further litigation on the matter.

• Environmental Compliance Case: A government environmental agency files a lawsuit against a manufacturing company for alleged violations of pollution control regulations. To avoid a lengthy and costly trial, the company and the agency negotiate a settlement. The company agrees to install new pollution abatement equipment, pay a civil penalty, and submit to regular inspections for a specified period. The court then formalizes this agreement by issuing an agreed decree (often referred to as a consent decree in this context). This decree legally obligates the company to fulfill all the agreed-upon environmental compliance measures and penalties.