What is a default judgment?

A default judgment is indeed a binding decision made when one party fails to respond to a legal action or comply with a court order. This situation typically arises in civil cases where the defendant does not answer the complaint filed against them within the time frame set by the court. When a defendant fails to respond, the court may assume that they do not contest the allegations, allowing the plaintiff to obtain a judgment in their favor without the need for a trial or further proceedings.

Understanding this concept is crucial because it highlights the importance of responding to legal documents promptly. If a party ignores a lawsuit, they risk losing the case automatically through a default judgment, which can have significant legal, financial, and reputational repercussions. The other options reflect different types of court decisions or processes that do not correspond with the specific conditions required for a default judgment.