Legal analysis: it is valid to declare that compensation has been reached and the end of compensation. A criminal letter of understanding generally refers to a written document of a legal nature issued by the victim when the victim and the criminal suspect or their families reach a settlement on the handling result of a criminal case. The purpose of issuing letters of understanding is to reduce the punishment of criminal suspects, and some can release criminal suspects on bail pending trial. Therefore, the letter of understanding is sent by the victim to the criminal's family, and is generally handled by the responsible lawyer. The letter of understanding is generally completed in the process from prosecution to court cross-examination, and has the effect of discretionary mitigation and lighter punishment in criminal law.
Legal basis: Criminal Procedure Law of People's Republic of China (PRC).
Article 289 If both parties reach a settlement, the public security organ, the people's procuratorate and the people's court shall listen to the opinions of the parties and their relevant personnel, examine the voluntariness and legality of the settlement, and preside over the making of a settlement agreement.
Article 290 The public security organ may make suggestions to the people's procuratorate for leniency in cases where a settlement agreement is reached. The people's procuratorate may put forward suggestions to the people's court for lenient punishment, and may make a decision not to prosecute if the crime is minor and does not need to be sentenced to punishment. The people's court may punish the defendant lightly according to law.