Legal Definitions - offer of compromise

An offer of compromise is a proposal made by one party to settle a dispute with another party in a peaceful manner. This offer is usually made by paying a certain amount of money to avoid or end a lawsuit or any other legal action.

For instance, if two parties are involved in a legal dispute, one party may offer to pay a certain amount of money to the other party to settle the dispute and avoid going to court. This offer is known as an offer of compromise.

It is important to note that an offer of compromise is usually not admissible as evidence of the offering party's liability during a trial. However, it may be admissible for other purposes.

For example, if a party offers to settle a dispute for $10,000, and the other party rejects the offer and goes to court, the judge may consider the offer when deciding on the final judgment. The judge may also consider the offer when deciding on the amount of damages to be awarded to the winning party.