A "settlement agreement" is a contract between two or more parties that have a dispute, where the parties agree to settle the matter and not engage in further litigation or arbitration. Typically, one party pays a sum to the other party, and the paying party receives a release of any and all claims related to the dispute. A "mutual release" occurs where each party agrees to mutually release the other party of any and all claims related to the dispute. A release will typically include all claims, obligations and liabilities related to the dispute, whether known or unknown at the time of the settlement.