Settlement Agreement Contract Template for England and Wales

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Key Requirements PROMPT example:

Settlement Agreement Contract

"I need a Settlement Agreement Contract to resolve an IP dispute with a former employee who left our tech company, including provisions for the return of company property and ongoing confidentiality obligations regarding our software development projects."

Document background

A Settlement Agreement Contract is used when parties wish to formally resolve their disputes without court proceedings or conclude existing litigation. Under English and Welsh law, these agreements are particularly common in employment contexts but are also used across various commercial and civil disputes. The document must address specific statutory requirements, particularly those under the Employment Rights Act 1996 and Equality Act 2010. It typically includes detailed settlement terms, releases, confidentiality provisions, and tax considerations. For employment-related settlements, independent legal advice is often mandatory for the agreement to be enforceable.

Suggested Sections

1. Parties: Identification of settling parties and their details

2. Background: Context of dispute and reason for settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Core settlement provisions including payment terms

5. Release of Claims: Waiver and release of specified claims

6. Confidentiality: Obligations regarding non-disclosure of settlement terms

7. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Tax Indemnity: Used when settlement includes taxable payments requiring specific tax provisions and indemnities

2. Non-Disparagement: Mutual obligations not to make negative statements about the other party, typically used in high-profile or sensitive settlements

3. Future Cooperation: Provisions regarding future assistance or testimony in ongoing proceedings or investigations

4. Return of Property: Provisions for returning company/party property, particularly relevant in employment-related settlements

Suggested Schedules

1. Schedule of Claims: Detailed list of claims being settled and waived

2. Payment Schedule: Detailed breakdown of payment amounts, timing, and payment methods

3. Deed of Release: Formal release document containing detailed terms of the settlement

4. Legal Advice Certificate: Certificate confirming that independent legal advice has been received by the parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

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Authors

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