Settlement
A settlement is an agreement in which the dispute or uncertainty of the parties over a legal relationship is removed by way of compromise. A distinction is made between out-of-court settlements, which can be concluded as normal legal transactions without a lawyer, and settlements in court. The latter is simultaneously an executory title that can be used for debt enforcement. Courts are required at all stages of the proceedings to work towards an amicable settlement – this is why settlement proposals are often made in court. No debt enforcement can be carried out on the basis of an out-of-court settlement – in order to obtain a corresponding executory title, the creditor has to sue for specific performance.