The people in dispute can agree to resolve their differences in any way that they choose. Often, they agree to enter into a legally binding agreement. This means that, if one of them does not honour the agreement, the other can enforce it in court.

Often, the people in dispute are not ready to enter into a legally binding agreement but still write down what they have agreed to, so that there is no disagreement later about it. Sometimes, their lawyers use this document to produce a legally binding agreement that the parties sign later.