In a______ , one party gives up the right to initiate or continue litigation in return for a sum to be paid by the other party.

A) settlement agreement
B) mediation
C) no-action agreement
D) payoff

Settlement Agreement

A legal agreement that resolves a dispute between two parties without the need for a trial.

No-Action Agreement

An understanding or assurance from a regulatory authority indicating that no enforcement action will be taken, often despite potential violations.

Payoff

A final payment that settles a debt or an investment, or the bribe to secure someone's compliance or silence.