A template for recording the full and final settlement of a dispute that is the subject of arbitration under the law of England & Wales. Use it where the parties have agreed terms and want to bring the arbitration to an end.
How to use this template - Replace every
[SQUARE-BRACKET]field with your details before use. - This records a settlement. If you want the settlement to be enforceable as an arbitral award, ask the tribunal to record the agreed terms as an agreed award under the Arbitration Act 1996 (clause 9 explains the option). - Decide whether payment is a lump sum or instalments, and complete clause 3 accordingly. - Have all parties sign; keep a signed copy each. - This is a starting point only, have a solicitor review it before signing.
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THIS SETTLEMENT AGREEMENT is made on [DATE]
BETWEEN
(1) [CLAIMANT NAME] of [ADDRESS / COMPANY NUMBER] ("the Claimant"); and
(2) [RESPONDENT NAME] of [ADDRESS / COMPANY NUMBER] ("the Respondent"),
together the "Parties" and each a "Party".
Background
(A) A dispute has arisen between the Parties concerning [SHORT DESCRIPTION OF THE DISPUTE] (the "Dispute").
(B) The Dispute has been referred to arbitration under an arbitration agreement dated [DATE] / the arbitration clause in [CONTRACT] (the "Arbitration"), reference number [ARBITRATION REF], seated in [SEAT, e.g. London, England].
(C) The Parties have agreed to settle the Dispute and to end the Arbitration on the terms set out below.
Agreed terms
1. Definitions. "Settlement Sum" means the amount in clause 3. "Claims" means all claims, counterclaims, rights and remedies arising out of or connected with the Dispute, whether known or unknown.
2. Settlement. The Parties settle the Dispute in full and final settlement on the terms of this Agreement.
3. Payment. The Respondent shall pay the Claimant £[AMOUNT] (the "Settlement Sum") by [DATE] / in [NUMBER] monthly instalments of £[AMOUNT] beginning on [DATE], to [BANK ACCOUNT DETAILS].
Note: delete the option you are not using. Consider adding interest or a default clause if paying by instalments.
4. Full and final settlement. On receipt of the Settlement Sum, each Party releases and forever discharges the other from all Claims, and agrees not to bring or continue any proceedings in respect of them.
5. No admission of liability. This Agreement is entered into without any admission of liability by any Party.
6. Ending the Arbitration. The Parties shall jointly notify the tribunal of this settlement and take all steps needed to bring the Arbitration to an end, each bearing [their own / as agreed] costs.
7. Confidentiality. The Parties shall keep the terms of this Agreement and the Dispute confidential, except as required by law, by a regulator, or to professional advisers.
8. Costs. Save as set out in clause 3, each Party bears its own legal and arbitration costs.
9. Agreed award (optional). If the Parties wish, they may request that the tribunal records the agreed terms in the form of an agreed award under the Arbitration Act 1996, so that the settlement can be enforced as an award.
Note: an agreed award can make enforcement easier, particularly across borders. Delete this clause if not required.
10. Further assurance. Each Party shall do all things reasonably necessary to give effect to this Agreement.
11. Entire agreement. This Agreement sets out the whole agreement between the Parties about the Dispute and supersedes all prior discussions.
12. Governing law and jurisdiction. This Agreement and any dispute arising from it are governed by the law of England and Wales, and the courts of England and Wales have [exclusive / non-exclusive] jurisdiction, save where clause 9 applies.
13. Counterparts. This Agreement may be signed in counterparts, each of which is an original.
Execution
Signed by [CLAIMANT NAME]: __________________________ Date: [DATE]
Signed by [RESPONDENT NAME]: __________________________ Date: [DATE]
For a company, sign in accordance with the Companies Act 2006 (for example, by a director in the presence of a witness, or by two authorised signatories).
--- This template is a starting point and not legal advice. Have a qualified solicitor review and adapt it before use. Governing law: England & Wales.