A Compromise Agreement is a legally binding document that outlines the terms of an agreement reached between two or more parties. It’s designed to settle a dispute quickly and prevent legal action from being taken. The agreement outlines the roles, responsibilities and expectations of each party—so all involved understand their respective duties. It also sets out any financial compensation which will be made, and defines a timeline for when payment needs to be made. Ultimately, Compromise Agreements aim to resolve disputes quickly and avoid costly litigation in court.