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Compromise and Settlement

Agreement to resolve a dispute by mutual concessions.

Added: March 7, 2026
Applicable: Universal

Detailed Explanation

A Compromise and Settlement Agreement is a contract used to resolve a dispute where parties agree to mutual concessions to avoid or end litigation. Unlike a simple release, a compromise implies that both sides are giving up something (e.g., one party pays less than demanded, and the other accepts less than owed) to reach a final resolution. It acts as a bar to future legal action regarding the same dispute and is often used in debt settlement or civil liability cases.

Tags

#dispute resolution#concession#debt settlement#litigation

Applicable Countries