In the case of a settlement, the two parties resolve a legal dispute by mutual concession. However, the so-called court settlement only becomes procedurally effective if it brings a pending action to a conclusion, in whole or in part.
Cooperation for settlement of a law suit is of great practical significance. Courts suggest that the parties pursue conclusion by settlement above all to avoid protracted and expensive procedures for the taking and giving of evidence. Often it is also in the interest of the defending party to conclude a pending law suit as quickly as possible by way of settlement.