What things should be included in the Full and Final Settlement Letter? Settlement demand letters are used in most personal injury cases to begin settlement negotiations.Access our detailed guide and free template for full and final settlement letter. Learn how to effectively document employee settlements. Below is a sample settlement letter from the paying agency to the OAG authorizing the settlement or judgment and amount of the claim. How do I write a settlement proposal? Part 1 of 3:Explaining Your Situation 1. A settlement agreement and release, also known as a mutual release and settlement agreement, is a legal document between parties of a claim. The Parties agree to the following procedure to be utilized in the event of a dispute concerning this Agreement: (i).