Definition - What does Settlement mean?
A settlement is a legal commitment to a specific financial sum being transferred between two parties, most often from one side to the other. In certain cases, property must be exchanged as part of the settlement. It is a legal dictate upon the subject and must be followed. A settlement also represents the final ruling on that subject and indicates that at some stage, both parties compromised (or relented) to agree to terms that form the settlement itself.
Justipedia explains Settlement
A settlement is considered final in nature and both sides are legally obligated to stand by the terms in the settlement order. If either party breaches the order, they can be subject to court fines and other monetary damanges paid to the other party.