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Simple English definitions for legal terms
Settlement
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A quick definition of Settlement:
Settlement: A settlement is an agreement that ends a disagreement or problem between people or companies. It means they have decided to stop fighting and have come to an agreement. Sometimes, they keep the agreement private. In business, settlement means paying off a debt or closing an account. In wills and estates, settlement means finishing all the tasks that need to be done after someone dies, like giving away their things to the people they wanted to have them.
A more thorough explanation:
Definition: Settlement can mean different things depending on the context. Here are some common definitions:
- An agreement that ends a dispute and results in the voluntary dismissal of any related litigation. This means that two parties who were in a disagreement have come to an agreement and decided to stop any legal action. The terms of the agreement are often kept private. For example, if two people were in a car accident and one person sued the other, they might settle out of court by agreeing on a certain amount of money to be paid to the person who was injured.
- In business law, settlement refers to the payment, satisfaction, and closing of an account. This means that a debt has been paid off and the account is closed. For example, if a company owed money to a supplier, they might settle the account by paying the full amount owed.
- In wills and estates, settlement refers to the complete execution of an estate by the executor. This means that all of the tasks related to distributing the assets of a deceased person's estate have been completed. For example, if someone passed away and left behind a will, the executor of the will would need to settle the estate by distributing the assets to the beneficiaries named in the will.
- In wills and estates, settlement can also refer to the conveyance of property interests to beneficiaries in a way that alters what they would receive as heirs under statutes of descent and distribution. This means that the beneficiaries named in a will might receive more or less than they would have if the estate had been distributed according to the laws of the state. For example, if someone left behind a will that gave a larger share of their estate to one child than the others, that child would receive more than they would have if the estate had been distributed equally among all of the children.
Overall, settlement refers to the resolution of a dispute or the completion of a task related to a legal matter or estate. It can involve agreements, payments, and the distribution of assets.