A settlement means that the parties agree among themselves how a dispute is to be resolved. In order to reach a settlement, the parties must have the right to resolve the dispute themselves. This is the case, for example, with most commercial disputes. In other cases, a court is required to decide the dispute, for example in certain family law cases where other interests than the parties' own must also be taken into account. A settlement can be based on how the parties assess their legal position in the dispute, but often many other factors are also taken into consideration, such as, for example, the parties' future cooperation opportunities and the potential costs of resolving the dispute. A settlement may be oral, but it is always preferable for the parties to enter into a written agreement to reduce the risk that the settlement itself will lead to new disputes.