judgment
Definition
A judgment is the official decision a court makes at the end of a lawsuit, declaring who wins and what the losing party must do, such as pay money. Once a court enters a judgment against someone, it becomes a legally enforceable order, not just an opinion or recommendation.
Example
If a customer sues your business for $10,000 over a faulty product and the court rules against you, that court issues a judgment ordering you to pay the $10,000.
Watch Out
A judgment against your business can allow the other party to garnish your bank accounts or seize business assets if you do not pay, so ignoring a lawsuit is never a safe option.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.