What is a good faith settlement in civil law?

In civil law, a good faith settlement is an agreement between two or more parties in which the parties negotiate a resolution of their dispute and agree to abide by the terms of the settlement. This type of agreement is commonly used to resolve disputes in court, outside of the courtroom, without a judge or jury. In Nevada, a good faith settlement is evaluated based on the justice of the agreement and not the bargaining power of the parties involved. The settlement must be fair and reasonable under the circumstances and it must not be made simply to avoid litigation. In addition, the settlement must be entered into with good faith and cannot be made fraudulently or in bad faith. All parties involved must enter into the settlement knowingly and voluntarily and have a full understanding of the terms and conditions of the agreement. When a good faith settlement is reached, it is binding on both parties. This means that they must abide by the terms of the settlement or risk being found in breach of the agreement. In order to ensure that the settlement is reasonable and enforceable, it is often recommended that parties seek the advice of a qualified attorney.

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What is a good faith settlement in civil law?

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