Q&As

Where client A is legally represented when concluding a settlement agreement, does this give rise to an inference that A must have understood the terms of the settlement? If A maintains that they did not understand the agreement when entering into it, what action can A now take vis-à-vis the settlement agreement and/or their legal advisers?

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Produced in partnership with Ryan Turner of Lamb Chambers
Published on LexisPSL on 09/07/2019

The following Dispute Resolution Q&A Produced in partnership with Ryan Turner of Lamb Chambers provides comprehensive and up to date legal information covering:

  • Where client A is legally represented when concluding a settlement agreement, does this give rise to an inference that A must have understood the terms of the settlement? If A maintains that they did not understand the agreement when entering into it, what action can A now take vis-à-vis the settlement agreement and/or their legal advisers?

As a matter of law, where a party (whether legally represented or otherwise) signs an agreement they are taken to have understood and read the terms of that agreement.

There are only limited circumstances in which the courts will intervene to rescind a contract and treat it as void, these are:

  1. fraudulent misrepresentation

  2. bribery

  3. duress

  4. mental incapacity

For more information on these issues, see Practice Note: Rescission of a contract.

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