Settlement Agreement
This
Agreement ("Agreement") is made and effective this ____________
(Date), by and between ("Second Party")
________________________________________________ (name & address) and ("First Party"), and
____________________________________ (name & address).
First
Party and Second Party are parties to an earlier Agreement dated _____________,
The
First Party has alleged that the Second Party is in default of its obligations
under the
Disputed
Agreement (the "First Party's Claims");
The
Second Party has alleged that the First Party is in default of its obligations
in the
Disputed
Agreement (the "Second Party's Claims"); and
The
First Party and the Second Party wish to resolve their differences and
responsibilities pursuant to the Disputed Agreement, the First Party's Claims
and the Second Party's Claims.
Therefore,
in consideration of the foregoing and the covenants, releases, and
agreements set forth herein and for other good and valuable consideration,
First Party and Second Party agree as follows:
1.
General Release.
A. For valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, and with the intent to be
legally bound hereby, First Party does hereby release, acquit, and forever
discharge Second Party and does hereby covenant and agree never to institute or
cause to be instituted any suit or other form of action or proceeding of any
kind or nature whatsoever against Second Party based upon the First Party's
Claims and any and all other claims, demands, indebtedness, agreements,
promises, causes of action, obligations, damages, or liabilities of any nature
whatsoever, in law or in equity, whether known or unknown, suspected, or
claimed, that First Party ever had, has claimed to have, now has, or may hereafter
have or claim to have against Second Party related in any way to or arising out
of or by reason of any matter, cause, thing, or act of Second Party, or any of
Second Party's employees, or any omission of Second Party, or any of Second
Party's employees related in any way to or arising out of any claims asserted
or that could have been asserted, or related in any way to or arising out of
the Disputed Agreement.
B. For
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and with the intent to be legally bound hereby, Second Party does
hereby release, acquit, and forever discharge First Party from; and does hereby
covenant and agree never to institute or cause to be instituted any suit or
other form of action or proceeding of any kind or nature whatsoever against
First Party based upon the Second Party's Claims and any and all other claims,
demands, indebtedness, agreements, promises, causes of action, obligations,
damages, or liabilities of any kind whatsoever, in law or in equity, whether
known or unknown, suspected, or claimed that Second Party ever had, has claimed
to have, now has, or may hereafter have or claim to have against First Party
related in any way to or arising out of or by reason of any matter, cause, thing,
or act of First Party, or any of First Party's employees, or any omission of
First Party, or any of First Party's employees related in any way to or arising
out of any claims asserted or that could have been asserted, or related in any
way to or arising out of the Disputed Agreement.
2.
Payment.
In
partial consideration of the releases provided herein, the parties agree to the
following
payment or payments:
___________________________________________________.
3.
Termination.
The
Disputed Agreement shall terminate in all respects effective as of the signing
of this Agreement.
4.
Satisfaction and Accord.
It
is understood and agreed that the above-recited consideration is provided to
and accepted by the parties in complete settlement and compromise and as full
satisfaction of disputed claims, the validity of which are expressly denied by
the parties, and such consideration is not to be construed as an admission of
liability on the part of any of the parties, but rather, is for the purpose of
terminating all disputes among the parties related to or arising out of the
Disputed Agreement, the First Party's Claims and the Second Party's Claims.
5.
Costs.
Each
Party agrees to pay its own costs, including but not limited to its own legal
fees.
6.
Successors and Assigns.
This
Agreement and the release and covenants contained herein shall be binding upon
and shall inure to the benefit of each party, and each of their respective
predecessors, successors and assigns and each of their respective past and
present, direct and indirect, subsidiary, parent, and affiliated entities, and
to each of their respective past and present employees, agents, attorney’s in
fact, attorney’s at law, representatives, officers, directors, shareholders,
partners and joint ventures.
7. Entirety of Agreement.
The terms and conditions set forth herein constitute the
entire agreement between the parties and supersede any communications or
previous agreements with respect to the subject matter of this Agreement. There are no written or oral understandings
directly or indirectly related to this Agreement that are not set forth
herein. No change can be made to this
Agreement other than in writing and signed by both parties.
8.
Governing Law.
This
Agreement shall be construed and enforced according to the laws of the State of
____________________ and any dispute under this Agreement must be brought in
this venue and no other.
9.
Headings in this Agreement
The
headings in this Agreement are for convenience only, confirm no rights or
obligations in either party, and do not alter any terms of this Agreement.
10.
Severability.
If
any term of this Agreement is held by a court of competent jurisdiction to be
invalid or unenforceable, then this Agreement, including all of the remaining
terms, will remain in full force and effect as if such invalid or unenforceable
term had never been included.
In
Witness whereof, the parties have executed this Agreement as of the date
first written above.
_________________________ _______________________
First
Party Second
Party
Settlement Agreement
Review
List
This
review list is provided to inform you about the document in question and to
assist you in completing it.
1. Signing
this agreement discharges all claims between the parties, not just the one
specific claim. If there is a
possibility that you wish to pursue other claims against the other party,
modify the Agreement accordingly and consider consulting an attorney for their
advice prior to signing this Agreement.
2. Note
also that certain state and federal statutes do not let the parties bargain
away certain rights such as many employment claims. Having said this, it is always better to
attempt to settle these claims in this manner to demonstrate to a Court, should
it become involved at a later date, that this was the intention of the
parties.
3. Laws
do vary somewhat state to state and are modified both by statute and legal
precedent over time. This is always a
good reason to have a lawyer review any agreement, including this one, for
hidden problems.
4.
As
a practical matter, print at least two copies and have them signed in the
original so both parties have an original for their records.
5.
Once
signed, consider using this Settlement Agreement as a standard for future
disputes you may become a party to. It
is our experience, that new disputants can be influenced in favor of settlement
if they see that you have done so before.
Presenting them with a signed Agreement can also move the matter forward
more expeditiously and under similar payment terms and conditions. You may also want to consider using the other
side as a reference about how the Settlement Agreement worked out and why it
was a worthy enterprise, assuming they believe it to be so.
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