What do you call it when two parties in a dispute reach an agreement?

When two parties in a dispute reach an agreement, it is referred to as a settlement. A settlement typically involves the parties negotiating terms that are acceptable to both, thereby addressing the issues at hand without the need for further legal proceedings or a court decision. This agreement may encompass various aspects, such as the resolution of the dispute, compensation, or specific actions to be taken by one or both parties.

Settlement is a common outcome in legal disputes, especially in civil cases, where both parties agree to resolve their differences amicably, often with the assistance of legal representation. It is considered a practical solution that can save time and resources compared to lengthy litigation.

In contrast, mediation involves a neutral third party who facilitates discussion and negotiation but does not impose a decision. Arbitration, on the other hand, is a more formal process where a neutral party hears both sides and makes a binding decision. The term 'resolution' can refer to the broader process of resolving a dispute but is less specific than a settlement. Thus, the term that best describes an agreement reached between two disputing parties is settlement.