What is the definition of litigation?

Litigation refers specifically to the process of taking legal action, which is accurately characterized as a lawsuit or legal action. It encompasses all formal legal proceedings initiated to resolve disputes between parties. This involves the court system, where one party sues another for reasons such as breach of contract, personal injury, or other legal grievances.

The other options represent different concepts related to legal processes but do not define litigation. A court-negotiated settlement indicates an agreement reached outside of a formal trial, which differs from the adversarial nature of litigation. An informal disagreement resolved without court refers to alternative dispute resolution methods, which aim to settle issues without escalations into litigation. Lastly, a legal formality for property transfer typically pertains to specific legal procedures, such as those involved in real estate transactions, which also do not encompass the broader process of litigation.