Settlement Offer Letter Template for Malaysia

The Settlement Offer Letter is a critical document in Malaysian dispute resolution practice, used when one party wishes to propose a formal resolution to a conflict or claim. This document type is particularly relevant in both commercial and civil disputes under Malaysian jurisdiction, where it serves as an official record of settlement terms offered. The letter typically includes specific settlement amounts, payment terms, conditions for acceptance, and release clauses. A Settlement Offer Letter must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and relevant civil procedure rules. It's commonly used in pre-litigation settlement attempts, during mediation processes, or even during ongoing legal proceedings as a means to achieve an out-of-court resolution. The document's proper drafting is crucial as it can have significant legal implications and, if accepted, forms a binding agreement between the parties.

1. Letterhead and Date: Company/individual's details, address, and current date

2. Recipient Details: Full name, title, and address of the recipient

3. Reference Line: Subject matter or dispute reference number

4. Dispute Identification: Clear identification of the dispute or claim being addressed

5. Settlement Amount: Specific amount being offered as settlement

6. Settlement Terms: Key terms and conditions of the settlement offer

7. Payment Terms: Details of how and when payment will be made

8. Release Clause: Statement regarding release of claims upon acceptance

9. Acceptance Period: Deadline for accepting the offer

10. Closing and Signature: Professional closing, name and signature of authorized person