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Simple English definitions for legal terms
final settlement
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A quick definition of final settlement:
Final settlement is an agreement that ends a disagreement or debt. It's like making a deal to stop fighting and move on. The agreement can include one person paying money or stopping certain actions in exchange for the other person giving up their right to keep arguing or suing. This happens a lot in court cases because it saves time and money. Final settlement can also mean finishing up a will or dividing up someone's things after they die.
A more thorough explanation:
Definition: Final settlement is an agreement between parties to resolve a dispute and prevent future litigation. It can also refer to the satisfaction and closing of a debt or business account after a final payment, or the completion of the execution of a will or distribution of an estate.
For example, in a civil case, the parties may negotiate a final settlement where one party agrees to pay the other a certain amount of money or stop conducting certain actions in exchange for the other party waiving their right to litigate the issue in the future. This reduces litigation costs and clears cases from court dockets.
In another example, when a person owes money to a creditor, they may make a final payment to settle the debt and close the account. This is known as a final settlement.
Similarly, in an estate, the final settlement refers to the completion of the execution of a will or distribution of an estate. This means that all assets have been distributed to the beneficiaries and all debts and taxes have been paid.