This is an agreement between two parties that are currently involved in a lawsuit or
dispute for the settlement of all claims. This agreement sets forth the terms between
two parties for the payment of monetary compensation to one party in exchange for the
forbearance of all claims against the other party. This agreement should be used by
small businesses or other entities that are currently involved in a lawsuit or dispute but
want to settle their claims outside the courtroom.
SETTLEMENT AGREEMENT RELEASE OF ALL CLAIMS
This Settlement Agreement and Release of All Claims (“Agreement”) is made and entered into
as of ___ [Instruction: Insert date.] by and between _____ [Instruction: Insert full legal
name of first party to Agreement. For clarity, this document refers to the party as “Party
1.” A find and replace of all such references with a more specific reference is
recommended.] (“Party 1”), and ____ [Instruction: Insert full legal name of first party to
Agreement. For clarity, this document refers to the party as “Party 2.” A find and replace
of all such references with a more specific reference is recommended.] (“Party 2”).
W I T N E S S E T H:
WHEREAS, _____ [Instruction: Insert relationship between Party 1 and Party 2, if any.];
and
WHEREAS, _____ [Instruction: In separate WHEREAS clauses, set forth a timeline and
the nature of the dispute.]
WHEREAS, Party 2 denies the allegations made by Party 1 and that it engaged in any unlawful
conduct whatsoever; and
WHEREAS, Party 1 filed an action against the Party 2 in _____ [Instruction: Set forth
pertinent details of case, including name of court where action filed and case or docket
number, if available.] in which Party 1 claims _____ [Instruction: Insert basis of claims filed
in court documents.] on the part of the Party 2; and
WHEREAS, the Party 2 claims that Party 1 _____ [Instruction: Insert the timeline and nature
of dispute of any counterclaims by Party 2, otherwise delete this language.]; and
WHEREAS, the Party 2 filed an action against Party 1 in _____ [Instruction: Set forth
pertinent details of case, including name of court where action filed and case or docket
number, if available.] in which the Party 2 claims _____ [Instruction: Insert basis of claims
filed in court documents.] on the part of Party 2; and
WHEREAS, _____ [Instruction: Insert any additional basis of claims filed in court
documents and court document information, if any, otherwise delete.]; and
WHEREAS, Party 1 and Party 2 desire to settle fully and finally all differences between them,
including, but in no way limited to, those differences and actions described above;
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NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained
and other good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged, and to avoid unnecessary litigation, it is hereby agreed by and between the parties
as follows:
1. This Agreement and compliance with this Agreement shall not be construed as an admission
by either Party 1 or the Party 2 of any liability or unlawful conduct whatsoever, or as an
admission of any violation of the rights of either party or any person, violation of any order,
law, statute, duty, or contract whatsoever against either party or any person, any and all of
which are herein specifically and expressly denied. Both parties specifically disclaim any
liability to the other party or any other person for any alleged violation of the rights of either
party or any person, or for any alleged violation of any order, law, statute, duty, or contract
on the part of Party 1 or the Party 2 any and all of which also are herein specifically and
expressly denied.
2. Each party shall file a dismissal with prejudice of the actions specifically set forth herein and
a dismissal with prejudice of any action pending in arbitration as to all claims, causes of
action, and parties.
3. Each party shall forego any additional efforts to collect on any monetary award issued on its
behalf by any governmental or quasi-governmental entity or agency against the other party to
this Agreement with respect to any of the claims described in this Agreement.
4. Each party hereto warrants to the other that it has not assigned, transferred nor purported to
assign or transfer any claim or rights thereto against the other party hereto that arose prior to
the execution of this Agreement and that it will not assign or transfer or purport to assign or
transfer hereafter any such claim or rights thereto.
5. The ____ [Instruction: Insert name of court with jurisdiction.] shall retain jurisdiction
over this action and Agreement until all monetary settlement payments are made by the Party
set forth herein to satisfy its obligations under this Agreement. Further, the parties agree that
jurisdiction for enforcement of this Agreement is proper in _____ [Instruction: Insert
state.] state court.
6. No later than _____, [Instruction: Insert date by which payment must be made.] _____.
[Instruction: Insert payment schedule for monetary payment set forth herein.] The
parties agree that the foregoing payments shall constitute the entire amount of monetary
consideration provided under this Agreement and that no party shall seek any further
compensation for any other claimed or unclaimed damage, costs, or attorneys’ fees in
connection with the matters encompassed in this Agreement. The parties agree that should
___ [Instruction: Insert party to make payment.] fail to make any of the required
payments pursuant to the schedule described in this Agreement, immediately upon the failure
to make the payment, the entire settlement amount (less any amounts that have been
previously paid) shall become imm