An arrangement arrived at, either in court or out of court , for settling a dispute upon what appears to the parties to be equitable terms, having regard to the uncertainty they are in regarding the facts, or the law and the facts together. Colburn v. Groton, 66 N. H. 151, 28 AU. 95, 22 L. R. A. 763; Treitschke v. Grain Co., 10 Neb. 358, 6 N. W. 427; Attrill v. Patterson, 58 Md. 226; Bank v. McGeoch, 92 Wis. 286, 06 N. W. 606; Rivers v. Blom, 163 Mo. 442, 63 S. W. 812. An agreement between two or more persons, who, for preventing or putting an end to a lawsuit, adjust their difficulties by mutual consent in the manner which they agree on, and which every one of them prefers to the hope of gaining, balanced by the danger of losing. Sharp v. Knox, 4 La. 456.
Black’s Law Online Dictionary
