What is meant by 'stipulation' in the context of legal agreements?

In the context of legal agreements, 'stipulation' refers to an agreement of counsel on certain facts that are accepted by the parties involved in a legal proceeding. This means that the attorneys for both sides agree to a specific fact, which can simplify the trial process by eliminating the need to prove that fact in court, thereby focusing the case on the remaining issues that are in dispute. Stipulations are often documented in writing and can cover a wide range of issues such as admission of evidence, timelines of events, or the authenticity of documents.

This definition is essential for understanding how stipulations can streamline legal proceedings and assist in reaching a resolution without the need for extensive litigation over undisputed facts. The other options do not fit this definition: an official ruling by the court involves a judicial decision rather than a mutual agreement, a contract between companies refers to a business arrangement rather than an understanding of facts, and a formal complaint is a document that initiates a lawsuit rather than a mutual agreement on existing circumstances.