Settlement Agreement

Resolve disputes peacefully and professionally with a legally binding Settlement Agreement that protects your rights and avoids prolonged litigation.

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Settlement Agreement

A Settlement Agreement is a formal legal document that records the mutual resolution of a dispute between two or more parties. It sets out the terms agreed upon—such as financial compensation, asset division, waivers of legal claims, or future obligations—ensuring finality and closure without the need for court intervention.

Whether it’s a business dispute, employment termination, or civil disagreement, a well-drafted Settlement Agreement can save time, money, and reputational damage.

Contents of a Settlement Agreement

A professionally prepared Settlement Agreement usually includes:

How it Works

Laws Governing Settlement Agreements in India

Settlement Agreements are governed by various laws, including:

  • Indian Contract Act, 1872
  • Civil Procedure Code, 1908
  • Arbitration and Conciliation Act, 1996 (if resolved through arbitration)
  • Industrial Disputes Act, 1947 (for employment-related settlements)
  • Relevant sectoral laws (if applicable)

Frequently Asked Questions (FAQ)

Yes, once signed by all parties, it becomes a binding contract under Indian law.

Not necessarily. A valid settlement avoids the need for further legal proceedings unless enforcement is required.

Absolutely. It’s commonly used in termination, severance, or wage-related matters.

The non-defaulting party can approach the court to enforce the agreement or claim damages.

Yes. Confidentiality clauses are standard in most settlement agreements.

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