Other forms: situations
Situation is related to the verb "situate," which means to place. A building might be situated on the top of a hill — that's its position or situation.
You've probably heard the term "sitcom," but may not realize it is short for "situation comedy," or a comedy where the humor is based on a set of quirky circumstances the characters find themselves placed in. A situation can also mean a set of circumstances that you find yourself placed in: holding both halves of a crazy aunt's broken vase could be a sticky situation — perfect for a situation comedy.