The Settlement Agreement: Elements, boilerplate template, and optional clauses
What is the the Settlement Agreement?
A Settlement Agreement is a legally binding document that is used to resolve a dispute or legal claim between two parties. It typically outlines the terms and conditions of a settlement, including any payments or compensation that may be involved, as well as any other actions that the parties have agreed to take to resolve the matter. A Settlement Agreement is usually entered into voluntarily by both parties and can be used to avoid the time, expense, and uncertainty of going to trial. It is important to consult with a legal professional to ensure that the terms of the Settlement Agreement are fair and reasonable and that all necessary legal requirements are met.
The following boilerplate template can be used on SimpleSignRequest.com
This Settlement Agreement (the “Agreement”) is made and entered into on [Date] by and between [Party A], with a mailing address of [Address] (“Party A”), and [Party B], with a mailing address of [Address] (“Party B”), collectively referred to as the “Parties.”
WHEREAS, the Parties have been involved in a dispute [describe the dispute];
WHEREAS, the Parties have agreed to resolve the dispute and to enter into this Settlement Agreement to memorialize the terms of the settlement;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Party A agrees to pay Party B the sum of [Dollar Amount] on or before [Date]. Party B acknowledges receipt of this payment as full and final satisfaction of any and all claims arising out of the dispute.
- Release of Claims:
In exchange for the payment described in Section 1, Party B hereby releases and discharges Party A, and its officers, directors, employees, agents, and representatives, from any and all claims, demands, damages, liabilities, and causes of action arising out of the dispute, whether known or unknown, foreseen or unforeseen, that Party B has or may have against Party A.
- No Admission of Liability:
The Parties agree that this Agreement does not constitute an admission of liability or fault on the part of either Party.
The Parties agree to keep the terms of this Agreement confidential and not to disclose them to any third party, except as required by law or with the prior written consent of the other Party.
- Governing Law and Jurisdiction:
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], and any legal action arising out of or relating to this Agreement shall be brought in the courts of [State].
- Entire Agreement:
This Agreement contains the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral, relating to the dispute.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of the date first written above.
Party A Signature
By: [Party A Signature]
Name: [Party A Name] Title: [Party A Title] Date: [Party A Date]
Party B Signature
By: [Party B Signature]
Name: [Party B Name] Title: [Party B Title] Date: [Party B Date]
What are some optional clauses that may be included in a Settlement Agreement?
- Non-Disparagement: The Parties agree not to make any negative statements or comments about each other, either orally or in writing, to any third party.
- Mutual Release: Both Parties release and discharge each other from any and all claims, demands, liabilities, and causes of action arising out of the dispute, known or unknown, foreseen or unforeseen.
- Return of Property: Any property belonging to either Party that is in the possession of the other Party shall be returned to the rightful owner.
- Tax Treatment: The Parties agree to treat any payment made under this Agreement as non-taxable, non-reportable payments for tax purposes.
- Attorneys’ Fees: The prevailing Party in any legal action arising out of this Agreement shall be entitled to recover its reasonable attorneys’ fees and costs from the other Party.
- No Assignment: This Agreement is personal to the Parties and may not be assigned or transferred by either Party without the prior written consent of the other Party.
- Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Notice: Any notice required or permitted under this Agreement shall be in writing and sent to the Parties at the addresses set forth in the Agreement, or to such other addresses as the Parties may designate in writing.
It is important to note that the inclusion of these optional clauses may depend on the specific circumstances of the dispute and the parties involved, and should be carefully considered in consultation with a legal professional.