Claim Settlement
Claim Settlement
____________________, referred to herein as the First Party, and _______________, referred to as the Second Party, agree:
That the parties have a potential claim dispute.
In full and complete settlement of any and all claims under the laws of any applicable jurisdiction, First Party shall pay $____________ to Second Party related to or arising from the claim referred to herein. Said settlement shall also include any attorney’s fees or claim/litigation expenses.
This release shall also inure to the benefit of _____________________.
This release shall be contingent upon the approval of the ________________. Upon final approval, which shall be defined as an approval for which no further review is possible, payment shall be made. In the event that the settlement is not approved this agreement shall be void and of no effect.
READ CAREFULLY. THIS IS A FINAL AND BINDING AGREEMENT AND WAIVER OF ALL FUTURE RIGHTS. UPON PAYMENT THE SECOND PARTY WILL HAVE NO FUTURE RIGHTS.
This is the entire agreement between the parties and may only be varied by a writing executed by the parties.Dated: ___________________
____________________________________
First Party
____________________________________
Second Party
Claim Settlement
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. Claim settlements, like releases, are a good idea to get memorialized and signed. This form provides that vehicle to effect that action. Use it if in doubt.
1. Make multiple copies. Give one to each signatory. Keep one with the transaction file.
2. Most parties are willing to accept less money immediately after an event than later after brooding over it. This is why insurance companies work hard to get quick settlements. Be so advised yourself to follow their experienced approach to these kinds of matters, if possible in your case.
Frequently Asked Questions
What is a claim settlement agreement?
A claim settlement agreement is a contract in which two parties agree to resolve a potential claim dispute. The first party agrees to pay a specified amount to the second party in full and complete settlement of any and all claims under applicable laws. The agreement also covers attorney's fees or claim/litigation expenses.
What does 'full and complete settlement of any and all claims' mean?
It means that the payment made under the agreement resolves all claims that the second party may have against the first party related to or arising from the claim referred to in the agreement. Once payment is made, the second party will have no future rights. This is a final and binding waiver of all future rights.
Does the settlement include attorney's fees and litigation expenses?
Yes, the agreement states that the settlement shall also include any attorney's fees or claim/litigation expenses. This means that the payment amount is intended to cover those costs as well. The agreement does not specify a separate amount for these expenses.
Who else can benefit from this release?
The release shall also inure to the benefit of a party to be named in the blank provided in the agreement. This means that the named party will also be protected by the release. The agreement does not specify who that party might be.
Is the settlement contingent on approval?
Yes, the release is contingent upon the approval of a party to be named in the agreement. Upon final approval, which is defined as an approval for which no further review is possible, payment shall be made. If the settlement is not approved, the agreement shall be void and of no effect.
What happens if the settlement is not approved?
If the settlement is not approved, the agreement shall be void and of no effect. This means that neither party will have any obligations under the agreement. The parties would then be free to pursue their claims as if the agreement had never been made.
When is payment made under this agreement?
Payment shall be made upon final approval, which is defined as an approval for which no further review is possible. The agreement does not specify a time frame for payment after final approval. The payment amount is to be filled in the blank provided.
What rights does the second party have after payment?
Upon payment, the second party will have no future rights. This is a final and binding agreement and waiver of all future rights. The second party cannot later bring any claims related to or arising from the claim referred to in the agreement.
Can this agreement be changed after it is signed?
This is the entire agreement between the parties and may only be varied by a writing executed by the parties. This means that any changes must be in writing and signed by both parties. Oral modifications are not permitted.
What should parties do before signing this agreement?
The agreement states 'READ CAREFULLY. THIS IS A FINAL AND BINDING AGREEMENT AND WAIVER OF ALL FUTURE RIGHTS.' Parties should ensure they understand the terms, including the payment amount, the approval contingency, and the waiver of future rights. It is advisable to seek legal counsel before signing.
