What does 'settlement' mean in legal disputes?

Settlement in the context of legal disputes refers to an agreement reached between parties to resolve their conflict without proceeding to a trial. This agreement typically involves negotiations where the parties compromise on certain issues to arrive at a mutually acceptable solution. Settlements are often preferred because they can save time, reduce legal costs, and provide more control over the outcome for both parties.

In contrast, the other options do not accurately describe the concept of settlement. A court order to proceed with a case refers to judicial instructions regarding the handling of cases in court, while a formal judgment made by a judge represents the conclusion of a trial where the court has made a definitive ruling on the matter. A type of legal appeal, on the other hand, involves seeking a higher court's review of a lower court's decision, which is a separate legal process that does not pertain to the idea of settlement. Thus, the definition that emphasizes reaching an agreement outside of court captures the essence of what a settlement is in legal disputes.