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A settlement is a voluntary agreement between two parties that ends a dispute and results in the dismissal of any litigation. A settlement can be beneficial because it speeds up the process of litigation and thereby avoids ongoing legal fees.
'Terms of settlement' is a document that sets out the agreement between the parties to settle the dispute. There is no set form for terms of settlement. Terms of settlement can be handwritten at court after discussions between the parties.
An example of a settlement can be a town, city, village, outpost, or metropolis. These settlements are usually located near natural resources or close together for security.
What should the settlement agreement contain? The standard terms of the settlement agreement are the following: The outstanding balance of the salary, bonuses, commission and holiday pay of the employee; A termination payment that will be paid by the employer to the employee for agreeing to terminate the contract.
The agreement should set forth what money is being paid for, i.e., the type of damages, as well as the claims it is being paid on. If some damages are taxable and some are not, the settlement agreement should set out, in as much detail as possible, the proportions and rationale.
What Should Be Included in a Settlement Agreement? Identifying information for all involved parties. A description of the issue you're seeking to settle. An offer of resolutions that both parties agree to. Proof of valid consideration from both parties without coercion or duress. Legal purpose.
A Settlement Agreement is a legally binding contract, so its enforcement can be sought through the courts if one party fails to adhere to its terms. Before going to court, however, it's advisable to attempt to resolve any breaches through mediation or alternative dispute resolution methods.
In civil litigation, an agreement to settle a dispute or provide a release or waiver of claims (see Practice note, Settlement: an overview and Standard document, Settlement agreement and release: civil litigation).