Final Settlement Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Final Settlement, written in plain English, along with examples of how it is used.
What is Final Settlement?
(n) Final settlement is the mutual understanding and agreement arrived among the parties involved in a dispute, wherein they settle the issues mutually by accepting, conceding or compromising their demands. Settlement is a reconciliation process in which legal stand and facts are immaterial.
History and Meaning of Final Settlement
Final Settlement is a legal term used to describe the mutual understanding or agreement arrived at by parties involved in a dispute. This agreement is often reached through the acceptance, concession, or compromise of demands without regard to the legal implications of the case or facts presented. The purpose of this agreement is to resolve the issues and bring about an end to the dispute.
Examples of Final Settlement
After months of negotiations, the two parties finally came to a final settlement, agreeing to divide the property assets equally.
The lawsuit was settled when the plaintiff and defendant came to a final settlement and agreed to drop all charges.
In the context of an insurance claim, final settlement refers to the compensation amount agreed upon by the claimant and the insurance company.
Legal Terms Similar to Final Settlement
Mediation - a legal process where a third party assists in the negotiations between two parties to help them reach a mutually acceptable agreement.
Arbitration - a legal process where a neutral third party listens to both sides of a dispute and makes a binding decision to resolve the conflict.
Settlement Agreement - a legal document that outlines the terms and conditions agreed upon by parties involved in a dispute.