For example, both parties might stipulate to certain facts and so not have to argue them in court. After the stipulation is entered into, it is presented to the judge.
In other legal systems, a similar concept is referred to by different names.
The word is derived from the Latin word stipula "straw." The Ancient Roman custom was that the negotiating parties, upon reaching an agreement, broke a straw as a sign of their mutual agreement and wrote down the agreement's rules (stipulations).