Settling disputes—drafting the settlement agreement

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Settling disputes—drafting the settlement agreement
  • Key requirements—drafting the settlement contract
  • Consideration for the settlement agreement
  • Parties and authority when drafting settlement agreements
  • Parties to the agreement
  • Authority to settle
  • Third parties (multiple defendants)
  • Third party rights
  • The effective date when drafting settlement agreements
  • The parties’ obligations when drafting settlement agreements
  • More...

Settling disputes—drafting the settlement agreement

This Practice Note considers the key issues when drafting a settlement agreement, including correct identification of the parties (including any relevant third parties), setting out the parties’ obligations with sufficient certainty and compulsion (including time of the essence and ‘endeavours’ provisions), drafting the release (the ‘full and final settlement’ estoppel), the inclusion of relevant boilerplate provisions and execution formalities.

For guidance on making a settlement offer and determining how to document your settlement, see Practice Notes:

  1. Settling disputes—settlement offers (Calderbank, WPSAC and Part 36)

  2. Settling disputes—how to document a settlement

For Precedent draft settlement agreements, see:

  1. Draft Settlement agreement—pre-action settlement

  2. Draft Settlement agreement—for settling disputes post-commencement of proceedings

Key requirements—drafting the settlement contract

As with any contract, there are a number of key elements to be considered:

  1. consideration (unless executing as a deed)—see: Drafting settlement agreements—consideration below

  2. parties to the agreement/deed—see: Drafting settlement agreements—parties and authority below

  3. the effective date—see: Drafting settlement agreements—the effective date below

  4. the parties’ obligations—see: Drafting settlement agreements—the parties’ obligations below

  5. the estoppel (full and final settlement provisions)—see: Drafting settlement agreements—the estoppel (the release of claims) below

  6. the boilerplate clauses—see: Drafting settlement agreements—boilerplate clauses below

  7. relevant warranties and indemnities—see: Drafting settlement agreements—warranties and indemnities

  8. the disposal of the proceedings—see: Drafting settlement agreements—disposing of the proceedings below

  9. execution formalities—see: rafting settlement agreements—execution formalities below

Consideration for the settlement agreement

Unless the agreement is

Popular documents