A Settlement Agreement’ (previously known as a compromise agreement) is recognized by statute as a legally binding contract made between an employer and employee, either towards the end or just after employment has terminated. A settlement agreement is an extremely important document which can be defined as an agreement by the parties to the litigation to end the matter based on some agreed upon terms. When people get into lawsuits and if things take a bad turn or if they think the process will be drawn out over a long time, the two people in the lawsuit resort to settlement and release.
When people get into lawsuits and if things take a bad turn or if they think the process will be drawn out over a long time, the two people in the lawsuit resort to settlement and release. Such a letter is written to propose a deal between two parties who have come to a mutual agreement and are willing to settle. Using a Settlement and Release Agreement can help everyone get on with their lives.
Settlement Release Letter Writing Tips
- The letter must be formal and should remain highly confidential.
- A “specific” release should resolve only the specific claim(s) at issue in the litigation.
- Get the logistics right.
- Enforce the settlement in a polite manner.
Settlement Release Letter Template
Use our free Settlement Release Letter to help you get started. If you need additional help or more examples check out some of the sample letters below.
From,
____________
____________
____________
Date- (on the day the letter is written)
To,
____________
____________
____________
Subject: Settlement Release letter
Respected Sir,
I am writing this letter to propose a settlement and release deal between the two of us. I want to propose this deal because __________________ (mention reason). Like you know all deals have certain claims to them, I would also like to make some claims.
(Mention the claims in bullet points)
_____________________
________________________
___________________
If you agree to these claims or if you want to negotiate further, I would gladly accept it and would set up a meeting so that we can discuss the settlement. I would urge you to think about it properly before you make a decision. And I would also say that you make a decision that will help us both move on with our lives and not fall back to courtroom drama.
If you wish to contact me, please call my office or send an email to me (mention email address). I hope you make the best decision.
Sincerely,
Your name.
Sample Letter
From,
Rohan Joshi
Sector 17, Vashi,
Navi Mumbai.
27 February 2017.
To,
Ashank Raut,
SV Road, Malad,
Mumbai.
Subject: Settlement Release letter
Respected Sir,
I am writing this letter to propose a settlement and release deal between the two of us. I want to propose this deal because both of us do not want to get involved in courtroom drama as it would affect us in a negative manner. I think that settling the matter out of court would be better for us.
As every negotiation deal goes I would like to put up certain claims. The claims are
On or before 20th March, you will make a payment to me in the amount of 50,000/-
No later than 10 days following the execution of this Agreement, the Parties will file a Joint Motion to Dismiss the Litigation with prejudice.
This settlement should be highly confidential
If you agree to these claims or if you want to negotiate further, I would gladly accept it and would set up a meeting so that we can discuss the settlement. I would urge you to think about it properly before you make a decision. It would be best if you agree to these claims so that we can move on with our lives.
If you wish to contact me please call my office number.
Regards,
Rohan Joshi.
Email Format
Such a letter is written to propose a deal between two parties who have come to a mutual agreement and are willing to settle. Using a Settlement and Release Agreement can help everyone get on with their lives. Following is the email format.
To: name@gmail.com
From: name@gmail.com
Subject: Settlement Release letter
Respected Ma’am,
I am writing this letter to propose a settlement and release deal between the two of us. I want to propose this deal because courtroom drama would result in negative publicity for our respective companies and it would be best to settle the matter out of court.
As every negotiation deal goes I would like to put up certain claims. The claims are
On or before 20th March, you will make a payment to me in the amount of 1,00,000/-
No later than 10 days following the execution of this Agreement, the Parties will file a Joint Motion to Dismiss the Litigation with prejudice.
This settlement should be highly confidential
If you agree to these claims or if you want to negotiate further, I would gladly accept it and would set up a meeting so that we can discuss the settlement. I would urge you to think about it properly before you make a decision. It would be best if you agree to these claims so that we can move on with our lives.
If you wish to contact me please call my office number or send me an email at rajk@gmail.com
Regards,
Raj Keshav.