Settlement Offer Letter Template for Hong Kong

The Settlement Offer Letter is a critical document in Hong Kong's dispute resolution landscape, used when parties seek to resolve conflicts without full litigation or to end ongoing legal proceedings. This document type combines elements of Hong Kong contract law with civil procedure requirements, requiring careful drafting to ensure enforceability. The Settlement Offer Letter typically includes detailed settlement terms, payment provisions, release clauses, and acceptance deadlines. It's particularly important in Hong Kong's business environment where maintaining relationships while resolving disputes is valued. The document can be used in various contexts, from commercial disputes to employment matters, and must account for Hong Kong's unique legal framework that combines common law principles with local ordinances. When marked 'Without Prejudice', it provides parties the freedom to negotiate without prejudicing their legal positions.

1. Letterhead and Date: Company letterhead or sender's address and current date

2. Recipient Details: Full name and address of the recipient, including any reference to their legal representation

3. Subject Line: Clear reference to the dispute or claim being settled, including any relevant reference numbers

4. Opening Statement: Formal opening confirming this is a settlement offer and its purpose

5. Dispute Background: Brief summary of the key facts and current status of the dispute

6. Settlement Terms: Clear and detailed outline of the proposed settlement terms, including payment amounts and timing

7. Conditions: Any conditions that must be met for the settlement to be effective

8. Timeline: Deadline for acceptance and any relevant execution timeframes

9. Confidentiality Statement: Statement regarding the confidential nature of the offer

10. Closing and Signature: Formal closing, signature block, and name/position of the sender