What is a settlement agreement?

A settlement agreement is a legally binding document that is used to resolve a dispute between two or more parties without the need for a trial. It is commonly used when one party was injured as the result of an accident and is pursuing a personal injury claim. In Texas, a settlement agreement will generally lay out a specific amount of compensation that the injured party is to receive as a result of their losses. This compensation can include medical bills, lost wages, property damage, and other expenses that the injured party is dealing with. The settlement agreement may also include language to waive all legal rights and claims that may have been present before the agreement was finalized. Once both parties agree to the settlement agreement, it becomes legally binding. This means that neither party can make any further changes or claims about the agreement or the events surrounding the accident. It also means that both parties have to abide by the provisions of the settlement agreement or else risk being held legally liable. Settlement agreements are often a preferred method of resolving disputes in Texas because they provide an efficient and cost-effective way to settle disputes without the time and expense of going to trial. They are also often used as a way to avoid the stress of a trial and the risk of a jury deciding the dispute.

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What is a settlement agreement?

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