Drafting Settlement Agreement
Hire our Expert for Drafting your Settlement Agreements
Settlement agreements are extremely important documents that require a high level of expertise and attention to detail in their drafting. There are several ways settlements go “wrong,” which is why lawyers are sought upon before “making a deal.” At HHS Lawyers, our inhouse legal drafting team consists of seasoned lawyers who have decades of experience in documenting settlements.
The firm has helped ensure settlement agreements of clients are valid by incorporating the key contract provisions, which are as follows:
Parties involved
With the drafting of a settlement agreement, our legal drafting team provides clear descriptions of parties involved, as well as who are going to be bound by the contract. It is necessary to ensure all parties (claimants, potential claimants, and defendants) are tied by identifying them by name, as members of classes, or as falling within particular descriptions.
Indemnities and undertakings
Our legal drafting service also includes provisions that a claimant won’t bring proceedings related to the same claims in the future or indemnity for the defendant if it becomes a subject again for the same claims being settled.
Scope of settlement
This is where it is clearly stated what’s being settled. Our legal drafting team helps clients carefully consider what a settlement agreement covers. This may include existing, future, and unknown claims. If what’s to be settled is a narrower issue in dispute, then it will reflect in the contract.
Payment
One of the parties of a settlement usually makes the payment. It’s important to specific by whom and to whom the payment will be made, to which account or by what method, by when, and in which currency. We advise clients on including provisions in relation to late payments. Also, the settlement agreement should also contain a breakdown of the payment that has been agreed by parties involved. Factors that are often considered in the calculation of a settlement payment include how long the dispute took to settle and potential cost or liability in defending a claim.
Legal costs
As parties most likely have acquired legal costs for the settlement, it’s important to be dealt with in a settlement agreement. A dispute may be settled for an amount specified in the contract, but if there is no mention of the legal costs, then an agreement with respect to the costs can’t be inferred.
Confidentiality
Parties may prefer a settlement agreement to remain confidential. If so, then this has to be expressed in the contract’s confidentiality provision. The agreement may also permit certain necessary exceptions like pursuant to a court order or limited to the respective auditors, lawyers, and insurers of the parties.
How HHS Lawyers can help you
It’s important for this type of contract to include governing laws and the jurisdiction of the agreement so there’s clarity on how disputes that arise are solved.
After a negotiation, which is often a hard-fought process, it’s easy to overlook the essential elements of a deal when drafting a settlement agreement. However, the drafting of the legal document has to be done carefully and it must be reviewed by experts to make sure all elements are captured. When there’s a mistake with the signed agreement, the court may be sought upon for rectification, but this process is quite difficult and getting it right can save lots of trouble for concerned parties down the line.
The skilled legal drafting team of HHS Lawyers doesn’t just help in the drafting of settlement agreements, but also advise on all aspects related to employment legislation and employment-related litigation. For further information, please contact our lawyers and legal consultants in Dubai to arrange a free initial consultation.
FAQ’s
What is a settlement agreement?
Settlement agreement is a legally binding contract between two or more people to settle a controversy before going to a court. It also stipulates what has been agreed upon, the obligations and the terms and conditions of which the parties involved will settle the dispute.
On what occasions is a settlement agreement employed?
Settlement agreements are widely applied to settle disputes with the contracts, employment disputes, financial claims, business dispute and civil disputes when the parties to the dispute are willing to find a common ground.
What is supposed to be in a settlement agreement?
A settlement agreement usually consists of the information about the parties, character of the conflict, the terms of the settlement that are agreed upon, conditions of payments when needed, confidentiality, and signatures of all parties stating that they agree to them.
Is a settlement agreement legally binding?
Yes, it becomes legally binding once all the parties have signed a settlement agreement. Both sides should stick to the negotiated terms and defaulting might make them be forced by law.
Is a settlement agreement an effective way to avoid a court procedure?
Yes, litigation can be avoided by way of a settlement agreement. The mutual agreement will allow the parties to solve the dispute faster and more inexpensively instead of going to court.
Is a settlement agreement subject to financial compensation?
Yes, it is true that most settlement terms are contingent upon some financial compensation or payment structure as a way of settling. The contract can provide the amounts of payment, deadline and mode of payment.
Do settlement agreements remain confidential?
Confidentiality clauses can be contained in settlement agreements so that the parties cannot share the terms or details of the dispute with a third party.
What will occur in case of breach of the settlement agreement by one of the parties?
In the case where one party does not abide by the settlement agreement, the other party can sue it to enforce the agreement or make claims due a violation.
Is it possible to revise an agreement on settlement once signed?
Yes, a settlement agreement could be modified in case all parties accepted the modifications. Any change must be written in written form and must be signed by the involved parties.
What is the reason why a lawyer should prepare a settlement?
A lawyer will see that the settlement agreement is written in a way that it is legally binding, and safeguards the interest of all the parties involved as also the risk of future conflict is reduced with the help of a lawyer.
