Court settlement is one of the legally permitted ways of ending civil litigation and non-litigation proceedings. Its key role is to facilitate the effective resolution of civil law disputes peacefully, on a voluntary basis. It is precisely the element of voluntariness that makes it a unique hybrid procedural-substantive legal institution, the effects of which are reflected on both levels. In this research, an attempt is made to separate the concept of court settlement from the general concept of settlement, starting precisely from the different legal effects that they produce. In addition, starting from the legal nature of the settlement, all the essential elements of its conclusion and the possibilities of settlement's contesting are presented in detail. Besides that, in several places is indicated the general effort of the state to encourage the amicable resolution of disputes not only in the field of civil law, but also in other procedures.