Which legal resolution is described by a mutual agreement that avoids a court judgment?

The correct answer is a settlement, as it refers to an agreement reached by the parties involved to resolve their dispute without proceeding to trial. In a settlement, both parties negotiate and come to terms that they can accept, thereby avoiding the time, expense, and uncertainty associated with a court judgment. This often includes discussions about compensation or changes in behavior to resolve the issues between them.

Settlements can occur at any point before or during court proceedings, and they are commonly favored because they can lead to quicker resolutions and allow more control over the outcome for the parties involved. By choosing to settle, parties can address their differences in a way that is mutually satisfactory, emphasizing the collaborative nature of this resolution method.

In contrast, a trial involves a court making decisions based on evidence and arguments presented, while arbitration is a more formal process where an arbitrator makes a binding decision, and a judgment is the official decision made by a court. Hence, these alternatives do not embody the essence of mutual agreement that characterizes a settlement.