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The passage is a part of the Sermon on the Mount in Matt., 5th chapter. Jesus had been speaking about quarrels between brothers, and urging reconciliation of such differences in the spirit of love, before coming to the throne of grace. Then (verse 25) he diverges to the question of lawsuits, which were common then as now, and advises his hearers to keep out of the hands of the law and to escape its penalties by settling their disputes between themselves. But he went further than this, for his language pointed to a higher tribunal, to which all must come for judgment and where condemnation awaits them which can only be escaped by their repentance and acceptance of divine mercy.
