Compromise Agreement
/ˈkɒmprəmaɪz əˈɡriːmənt/
Definitions
- (n.) A legally binding contract in which parties resolve a dispute by mutual concession without admission of liability.
The parties entered into a compromise agreement to settle the contract dispute out of court.
- (n.) An agreement to settle employment disputes, often including confidentiality and non-disparagement clauses.
The employee signed a compromise agreement to resolve the claim of unfair dismissal.
Forms
- compromise agreement
- compromise agreements
Related terms
See also
Commentary
Compromise agreements often include confidentiality provisions and should clearly state the scope of claims being settled to avoid future litigation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.