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Simple English definitions for legal terms
out-of-court settlement
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A quick definition of out-of-court settlement:
An out-of-court settlement is when two people or groups who are in a disagreement come to an agreement without going to court. This means they talk and figure out a solution on their own, instead of having a judge decide for them. It can happen in many different situations, like when someone owes money or when there's a problem with property. It's a way to solve problems without having to go through a long and expensive court process.A more thorough explanation:
An out-of-court settlement is an agreement between parties to end a dispute or lawsuit without involving the court. This means that the parties involved come to a resolution on their own terms, without a judge or jury making a decision for them.
For example, if two people are in a car accident and one person is at fault, they may agree to settle the matter out of court by having the at-fault driver pay for the damages to the other person's car. This avoids the time and expense of going to court.
Out-of-court settlements can also be used in property settlements, where property or interests in property are conveyed to beneficiaries in a way that differs from what they would receive under the laws of inheritance. This can be done voluntarily, without valuable consideration, or through a structured settlement where payments are made over time.
Overall, out-of-court settlements can be a quicker and less expensive way to resolve disputes, but it's important to make sure that all parties involved are satisfied with the terms of the settlement.