A more thorough explanation:

An offer of settlement, also known as an offer of compromise, is a proposal made by one party to another in an attempt to resolve a dispute without going to court. This offer usually involves the payment of money or some other form of compensation.

For example, if two parties are in a legal dispute over a contract, one party may make an offer of settlement to the other party. The offer may include a payment of money to resolve the dispute and avoid going to court.

It's important to note that an offer of settlement is usually not admissible as evidence of the offering party's liability in court. However, it may be admissible for other purposes.

Overall, an offer of settlement is a way for parties to resolve a dispute without the need for a lengthy and costly legal battle.