Question

A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will make a binding determination regarding the matter. This type of settlement is called___________.

Answer 1

Arbitration

Step-by-step explanation:

Based on the information provided within the question it can be said that this type of settlement is called Arbitration. This term refers to a form of resolving disputes outside of the court system by bringing in a third party who will render an "arbitration award" that will make a binding determination on the dispute. Which is completely enforceable in the courts.