Settlement - Definition - Law Dictionary Home Dictionary Definition settlement

settlement

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1 : the act or process of settling
2 a : an agreement reducing or resolving differences
;esp
: an agreement between litigants that concludes the litigation [the states finally agreed upon a and a consent decree "W. J. Brennan, Jr."] [entered into a property prior to the divorce]
b : a formal and permanent grant or conveyance
c : the sum, estate, or income granted or paid under a settlement [if the monetary limits of a defendant's insurance policy can be discovered in order to obtain reasonable s "J. H. Friedenthal et al."]
3 : closing [ costs]
4 : the transfer of funds between a payor bank and a collecting bank in order to complete transactions for customers