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The Average Settlement Compromise Agreement is utilized when parties involved in a general average incident agree to settle their respective contributions and claims. This document, primarily used in U.S. maritime jurisdictions, becomes necessary following the completion of general average adjustment calculations by a qualified average adjuster. It details the agreed settlement terms, contribution amounts, payment schedules, and mutual releases between all involved parties. The agreement ensures compliance with maritime law requirements while providing a clear framework for resolving complex multi-party claims arising from general average situations.
