Settlements are contracts, and enforcing one depends on where the case stands and on what the agreement says.

Before dismissal. The court retains jurisdiction over the pending action and may enforce a settlement reached in the case, usually by motion, if the agreement is established. Oral settlements placed on the record are enforceable in most jurisdictions; oral agreements not recorded face statute of frauds and proof problems, and several states require settlements to be in writing or on the record.

After dismissal. The court loses jurisdiction unless it expressly retained it or incorporated the settlement terms into the dismissal order. Otherwise the remedy is a new action for breach of contract, which is a substantial practical difference.

Drafting for enforcement. Retention of jurisdiction requested in the dismissal; or a consent judgment; or a liquidated damages and fee-shifting provision that makes a contract action economic.

Disputes about whether an agreement was reached. Emails exchanging terms followed by a refusal to sign are litigated frequently, and the outcome turns on whether the parties intended to be bound before a formal document. Term sheets should state expressly which it is.

Authority. Counsel’s authority to settle is presumed in some jurisdictions and must be established in others.