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Civil Settlement Agreement for the United Kingdom

Civil Settlement Agreement Template for England and Wales

A Civil Settlement Agreement under English and Welsh law is a legally binding document that formally resolves a dispute between parties without the need for court adjudication. It sets out the terms agreed between the parties, including any financial compensation, mutual releases of claims, and ongoing obligations. The agreement typically includes confidentiality provisions and is governed by English law principles of contract formation and enforcement.

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Civil Settlement Agreement

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What is a Civil Settlement Agreement?

A Civil Settlement Agreement is used when parties wish to resolve their disputes without proceeding to full litigation. It provides a formal framework for documenting the settlement terms reached between parties under English and Welsh law. The agreement typically arises from negotiations, mediation, or pre-action correspondence and includes provisions for payment, mutual releases, confidentiality, and any ongoing obligations. This document is crucial for providing certainty and finality to disputes while potentially saving time and costs associated with court proceedings.

What sections should be included in a Civil Settlement Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the dispute and reason for settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Core settlement provisions including payment terms

5. Release of Claims: Mutual release of claims between parties

6. Confidentiality: Terms regarding confidentiality of settlement

7. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Civil Settlement Agreement?

1. Non-admission of Liability: Used when party wishes to settle without admitting liability

2. Non-disparagement: When parties agree not to make negative statements about each other

3. Tax Implications: When settlement involves significant payment amounts

4. Future Cooperation: When parties need to work together post-settlement

What schedules should be included in a Civil Settlement Agreement?

1. Schedule 1: Payment Terms: Detailed payment schedule and mechanisms

2. Schedule 2: Released Claims: Specific list of claims being settled

3. Schedule 3: Ongoing Obligations: List of continuing obligations post-settlement

4. Appendix A: Related Documents: Copies of relevant correspondence or agreements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





















Clauses

























Industries

Contract Law Common Law Principles: Fundamental principles of contract law derived from case law, including offer, acceptance, consideration, and intention to create legal relations

Civil Procedure Rules 1998: Rules governing civil litigation in England and Wales, particularly relevant for court proceedings and settlement procedures

Limitation Act 1980: Legislation setting out the time limits within which different types of legal claims must be brought

Consumer Rights Act 2015: Legislation protecting consumer rights, applicable if one party is acting as a consumer in the settlement

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract or settlement agreement

Law of Property (Miscellaneous Provisions) Act 1989: Legislation concerning formalities for contracts and dispositions of interests in property

Civil Evidence Act 1995: Rules governing the admissibility of evidence in civil proceedings

Employment Rights Act 1996: Key employment legislation relevant if the settlement involves employment matters

Equality Act 2010: Legislation protecting against discrimination, particularly relevant in employment-related settlements

Without Prejudice Principle: Legal principle protecting settlement negotiations from being used as evidence in court proceedings

Civil Procedure Rules Part 36: Specific rules governing formal settlement offers in civil proceedings

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts and limiting the extent to which liability can be excluded

Misrepresentation Act 1967: Legislation dealing with false statements which induce parties to enter into contracts or settlements

UK GDPR: Data protection regulation governing the processing of personal data in the UK post-Brexit

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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