A negotiated settlement agreement is a legally binding document that outlines the terms of a settlement between two or more parties involved in a dispute. It serves as a formal record of the agreed-upon resolution, preventing future misunderstandings and providing a clear path forward.
Key Components of a Negotiated Settlement Agreement
Settlement agreement template – free to use
A well-crafted negotiated settlement agreement typically includes the following essential elements:
1. Identifying Information
Parties Involved: Clearly state the full legal names and addresses of all parties involved in the settlement.
Date of Agreement: Specify the exact date the agreement is signed.
2. Recital of Dispute
Brief Overview: Provide a concise summary of the underlying dispute or legal claim that led to the settlement.
3. Settlement Terms
Specific Provisions: Outline the terms of the settlement in detail, including:
Payment Schedule: If applicable, specify the amount to be paid, due dates, and interest rates.
Release of Claims: State that both parties are releasing each other from any and all claims arising from the dispute.
Confidentiality: If agreed upon, include provisions regarding the confidentiality of the settlement terms.
Attorney’s Fees: Address the allocation of attorney’s fees and costs.
Other Provisions: Include any additional terms necessary to address the specific circumstances of the settlement.
4. Mutual Release
Formal Release: State that both parties are formally releasing each other from any and all claims arising from the dispute.
5. Merger Clause
Complete Agreement: Indicate that the negotiated settlement agreement constitutes the entire agreement between the parties, superseding any prior agreements or understandings.
6. Governing Law
Applicable Jurisdiction: Specify the state or jurisdiction whose laws will govern the interpretation and enforcement of the agreement.
