What do we call an agreement across parties to resolve disputes without lawsuits?

The term that describes an agreement among parties to resolve their disputes without resorting to lawsuits is known as a settlement agreement. This type of agreement typically occurs when parties negotiate the terms to settle their differences before formal litigation begins or during the process itself. It allows for a resolution that is mutually acceptable, saving time and legal expenses that would be incurred in court.

Settlement agreements often outline the specific terms that each party agrees to, such as compensation or specific actions to be taken, thereby providing a clear path forward and reducing the potential for further conflict. By opting for a settlement, parties can maintain control over the outcome of their dispute and establish a resolution that is satisfactory to all involved, rather than leaving the decision to a judge or jury through a litigation process.