A Settlement Agreement is a critical agreement to get done absolutely on point or it will not serve its intended purpose. Simply having one leak or hole in a Settlement Agreement is all that is needed for that agreement to be invalidated. Settlement Agreements are generally made to avoid trial where one party pays or gives some form of consideration to the other. Courts will enforce the settlement if it is accurately drafted, then a default could result in breach of that contract.
Settlement Agreements come up quite often because a majority of legal cases are decided by settlement. Both sides generally have a strong incentive to settle to avoid the rising costs, the time and the stress associated with a trial, and very expensive attorneys fees. Generally, one side or the other will make a settlement offer early in litigation. The parties may hold, a settlement conference, at which they attempt to reach such a settlement.
In controversial cases, it may be written into a settlement that both sides keep its contents and all other information relevant to the case confidential, and/or that one of the parties does not, by agreeing to the settlement, admit to any fault or wrongdoing in the underlying issue.
When settling a dispute it is important that you ensure that time is taken to ensure the settlement document itself is properly drafted. The last thing someone wants to see is a settlement finally being negotiated and the settlement document is what is hastily done and is not secure.
Allow a LOKK professional to draft your Settlement Agreement. We can draft your Settlement Agreement to include Full or Partial Releases, Waivers, Confidentiality Clauses, Stipulated Judgments, and more. All which will can save you time and money.
For additional reference, here is a sample Settlement and Mutual Release Agreement we have drafted.