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High Low Settlement Agreement for Singapore

High Low Settlement Agreement Template for Singapore

A High Low Settlement Agreement under Singapore law is a risk-management tool used in dispute resolution where parties agree to settlement parameters with predetermined minimum and maximum amounts. The final settlement amount is contingent upon a specific outcome, but cannot exceed the agreed maximum or fall below the minimum. This agreement type is particularly useful in Singapore's sophisticated legal framework where parties seek to limit their exposure while maintaining the possibility of a favorable outcome.

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What is a High Low Settlement Agreement?

The High Low Settlement Agreement is a strategic dispute resolution tool commonly used in Singapore when parties wish to limit their risk exposure while preserving the opportunity for a favorable outcome. This agreement type establishes floor and ceiling amounts for the ultimate settlement, providing certainty about maximum exposure for defeNDAnts and minimum recovery for plaintiffs. In Singapore's commercial environment, these agreements are particularly valuable in cases involving insurance claims, personal injury matters, or commercial disputes where parties seek to manage their litigation risks while maintaining flexibility in the final settlement amount.

What sections should be included in a High Low Settlement Agreement?

1. Parties: Identification of settling parties and their legal details

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

3. Definitions: Key terms used in the agreement

4. High-Low Parameters: Specified minimum and maximum settlement amounts

5. Payment Terms: Timing and method of payment

6. Release Provisions: Mutual releases and waiver of claims

7. Governing Law: Specification of Singapore law as governing law

What sections are optional to include in a High Low Settlement Agreement?

1. Confidentiality: Terms of confidentiality if parties wish to keep settlement private

2. Insurance Provisions: Details of any insurance coverage implications

3. Tax Implications: Treatment of tax consequences

4. Alternative Dispute Resolution: Provisions for resolving disputes about the settlement agreement

What schedules should be included in a High Low Settlement Agreement?

1. Schedule of Claims: Detailed list of claims being settled

2. Payment Schedule: If payment is to be made in installments

3. Evidence of Authority: Proof of authority to enter into settlement for corporate entities

4. Original Dispute Documents: Reference documents relating to the underlying dispute

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

Singapore

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






















Clauses


























Industries

Civil Law Act (Cap. 43): Primary legislation governing general contract principles in Singapore, including formation, validity, and enforcement of contracts

Contracts (Rights of Third Parties) Act: Legislation governing how third parties may enforce terms of a contract, relevant for settlement agreements involving multiple parties

Mediation Act 2017: Framework for mediation proceedings in Singapore, including enforceability of mediated settlement agreements

Rules of Court 2021: Procedural rules governing civil proceedings in Singapore courts, including settlement procedures and enforcement

Contract Formation Requirements: Essential elements including offer, acceptance, consideration, intention to create legal relations, and capacity of parties

Settlement Law Requirements: Legal requirements specific to settlement agreements including validity conditions, enforceability provisions, and conditional settlement rules

Dispute Resolution Framework: Procedures for resolving disputes including civil procedure rules, mediation requirements, and jurisdiction clauses

Liability and Damages Principles: Rules governing quantum limitations, high-low parameters, and payment terms in settlement agreements

Legal Profession Act: Professional requirements and ethical obligations for lawyers handling settlement agreements in Singapore

Singapore Case Law on Settlements: Relevant judicial precedents and interpretations regarding settlement agreements by Singapore courts

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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