Which statement about settlements in civil cases is most accurate?

• A. Settlements require court approval to be binding
• B. Settlements are decisions made by the judge after trial
• C. Settlements require a jury verdict
• D. Settlements are agreements between both parties, whereas a judgment is issued by a court

Answer: (D)

Settlements arise when both sides negotiate terms to end a civil dispute, and the case is resolved by mutual agreement rather than a court ruling. A judgment, in contrast, is the court’s formal decision entered after a trial or a contested motion, which imposes rights and obligations by order of the court. Because of that, the statement that best captures the distinction is that settlements are agreements between both parties, whereas a judgment is issued by a court. The essence is that a settlement reflects the parties’ negotiated resolution, while a judgment is a court-made determination binding on the parties. In ordinary civil cases, a settlement becomes binding once the parties sign the agreement (though certain situations—like settlements involving minors or requiring court approval in some class actions—can involve the court).