settlement

The word “settlement” means a formal agreement that resolves a dispute, often involving payment. In plain terms, either an agreement that ends a dispute, or a place where people have set up a community.

“Settlement” is pronounced SEH-tuhl-muhnt (/ˈsɛ.təl.mənt/ in IPA).

Here is “settlement” used in a sentence: “They reached a settlement before the case went to trial.”

“Settlement” is a noun.

“Settlement” is a fairly common word in modern English, usually learned at around the B1 level.

“Settlement” has 2 distinct senses listed in this dictionary. The most common is: a formal agreement that resolves a dispute, often involving payment.

A settlement is a voluntary agreement in which the parties themselves resolve a dispute, usually before or during a trial. A judgment is a decision imposed by a court after hearing the case. Settlements are negotiated and often confidential; judgments are ordered by a judge and become part of the public record.

Yes. Once both sides sign, a settlement becomes a binding contract that can be enforced in court if either party fails to honour it. Because it is legally final, most settlements include terms releasing the other side from further claims arising from the same dispute.

Common forms include out-of-court settlements reached privately between parties, structured settlements that pay out in instalments over time, and lump-sum settlements paid all at once. Many disputes — from personal-injury and employment claims to commercial disagreements — end this way rather than going to a full trial.

If someone injured in a car accident sues the driver, the two sides might agree that the driver's insurer pays a fixed sum in exchange for dropping the lawsuit. That negotiated payment, ending the dispute without a court verdict, is a settlement.