Legal Definitions - out-of-court settlement

An out-of-court settlement is an agreement between parties to end a dispute or lawsuit without involving the court. This means that the parties involved come to a resolution on their own terms, without a judge or jury making a decision for them.

For example, if two people are in a car accident and one person is at fault, they may agree to settle the matter out of court by having the at-fault driver pay for the damages to the other person's car. This avoids the time and expense of going to court.

Out-of-court settlements can also be used in property settlements, where property or interests in property are conveyed to beneficiaries in a way that differs from what they would receive under the laws of inheritance. This can be done voluntarily, without valuable consideration, or through a structured settlement where payments are made over time.

Overall, out-of-court settlements can be a quicker and less expensive way to resolve disputes, but it's important to make sure that all parties involved are satisfied with the terms of the settlement.