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Settlement Agreement template
Settlement Agreement sample

What is Settlement Agreement?

Settlement Agreement Resolves disputes without litigation, specifying terms and conditions for resolution.

Sample template:


This Settlement Agreement (the "Agreement") is entered into as of [Effective Date], by and between Sarah L. Anderson ("Anderson") and John M. Roberts ("Roberts") (collectively referred to as the "Parties").


1.1. Dispute

WHEREAS, a dispute (the "Dispute") has arisen between Anderson and Roberts concerning specific matters and transactions;

1.2. Purpose

WHEREAS, the Parties, each in consideration of the promises and obligations herein, wish to settle, resolve, and extinguish all claims, actions, debts, and liabilities related to the Dispute;

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each Party, the Parties agree as follows:


2.1. Settlement Amount

In full and final settlement of the Dispute, Roberts shall pay Anderson the total sum of [Settlement Amount] United States Dollars (USD) (the "Settlement Amount").

2.2. Payment Schedule

The Settlement Amount shall be payable in [Number of Installments] equal installments of [Installment Amount] USD each, with the first installment due on [First Installment Date] and subsequent installments due on the [nth] day of each month following until the Settlement Amount is paid in full.

2.3. Manner of Payment

All payments made pursuant to this Agreement shall be made either by certified check, bank check, or wire transfer.

2.4. Default

If Roberts fails to make any installment payment when due, the entire unpaid balance of the Settlement Amount shall become immediately due and payable in full, at Anderson's sole discretion.


3.1. Mutual Release

Upon the execution of this Agreement and the receipt of the first installment payment, each Party, on behalf of itself and its respective heirs, successors, assigns, agents, and representatives, does hereby release, waive, and forever discharge the other Party, and its respective heirs, successors, assigns, agents, and representatives, from any and all claims, demands, causes of action, damages, losses, fees, or liabilities of any kind or nature whatsoever, whether known or unknown, suspected or unsuspected, which have arisen, or may arise, by reason of the Dispute, including without limitation, any legal costs, fees and expenses incurred in connection therewith.

3.2. No Admission of Liability

The Parties acknowledge and agree that the terms and conditions of this Agreement do not constitute, and shall not be construed as, an admission of liability or wrongdoing on the part of either Party, and that the matters settled hereby are in dispute.


4.1. Confidentiality Obligation

The Parties agree that the terms and conditions of this Agreement, and all communications relating to the negotiation, execution, and performance hereof, shall be and remain confidential. Neither Party shall reveal any details of these matters to any third party, except (a) as required by law, (b) to enforce the terms of this Agreement, (c) to the Parties' respective attorneys, accountants, or other professional advisors bound by professional confidentiality obligations, or (d) to the extent such information becomes generally known or available through no fault of either Party.

4.2. Breach of Confidentiality

In the event of a breach or threatened breach of this Section 4, the non-breaching Party shall be entitled to seek specific performance and injunctive or other equitable relief to enforce the provisions of this Section, in addition to any other remedies available at law or in equity.


Each Party represents and warrants to the other Party that: (a) it has full power and authority to enter into and fully perform its obligations under this Agreement; (b) it has not assigned, transferred, or otherwise encumbered any rights or claims related to the Dispute that would conflict with the provisions of this Agreement; and (c) it has fully read and understood the terms of this Agreement and has had the opportunity to consult with legal counsel of its choice prior to signing.


This Agreement shall be governed by, construed, and enforced in accordance with the laws of the United States and the laws of the state of [Governing State], without regard to conflicts of law principles. Any legal action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the state or federal courts located in [Governing State], and the Parties hereby irrevocably consent to the personal and exclusive jurisdiction and venue of such courts.


7.1. Entire Agreement

This Agreement constitutes the entire understanding of the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, and negotiations, whether written or oral. There are no representations, warranties, or agreements related hereto, except as expressly set forth herein.

7.2. Amendment

This Agreement may be amended or modified only in writing, signed by both Parties.

7.3. Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect, such provision shall be modified to the minimum extent necessary to render it enforceable, or if incapable of such modification, shall be severed from this Agreement, and the remaining provisions hereof shall remain in full force and effect.

7.4. Counterparts

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 and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party.

IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement as of the Effective Date.

__________ __________
Sarah L. Anderson John M. Roberts

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Common Sections of a Settlement Agreement

In this Settlement Agreement, you will see the following sections:

  1. Background and Purpose
  2. Settlement Terms and Payments
  3. Release and Waiver
  4. Confidentiality
  5. Representations and Warranties
  6. Governing Law and Venue
  7. Miscellaneous

Analysis/Summary of each section

  1. Background and Purpose : This section explains the reason for the agreement. Sarah Anderson and John Roberts have a dispute, and they want to settle it by agreeing on certain terms and conditions. This agreement will resolve all claims, actions, debts, and liabilities related to the dispute.

  2. Settlement Terms and Payments : This section outlines the payment terms. John Roberts will pay Sarah Anderson a specific amount of money in installments. It also explains how the payments should be made and what happens if John fails to make a payment on time.

  3. Release and Waiver : Once the agreement is signed and the first payment is made, both parties release each other from any further claims or liabilities related to the dispute. This section also clarifies that the agreement is not an admission of guilt or wrongdoing by either party.

  4. Confidentiality : Both parties agree to keep the details of the agreement and related communications confidential. They can only share this information under specific circumstances, such as when required by law or with their professional advisors. If confidentiality is breached, the non-breaching party can seek legal remedies.

  5. Representations and Warranties : Each party promises that they have the authority to enter into the agreement, have not assigned any rights or claims that would conflict with the agreement, and have had the opportunity to consult with legal counsel before signing.

  6. Governing Law and Venue : This section states that the agreement is governed by the laws of a specific state in the United States. Any legal action related to the agreement must be brought in the courts of that state, and both parties agree to the jurisdiction of those courts.

  7. Miscellaneous : This section includes various standard clauses, such as stating that the agreement is the entire understanding between the parties, can only be amended in writing, and that if any part of the agreement is found to be unenforceable, the rest of the agreement still stands. It also allows the agreement to be signed in separate copies, which together form the complete agreement.

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