Settlement Letter –
Settlement letter is an official letter or document which is intended to settle the dispute or disagreement among multiple parties. It is a part of negotiation to resolve never ending issue. It is one of the best solution to make two ends meet.
Various domain needs this template to reach a common goal of settlement. Here are list of few –
- Debt settlement
- Car accident
- Property settlement
- Marriage settlement
- Payment settlement
- Insurance etc
It is found that settling is better than going court. In today’s society going for a settlement outside is much preferred than unfavourable judgement.
Basically, one party offers some sort of privilege or payment as a token of compensation, it is less than actual amount demanded by the first party. Settlement letter also consists of all minute details about the scenario and is possibly prepared by recognised lawyer.
Benefits of Settlement letter
- Legal break – It provides a legal break to both the parties.
- Reduces stress – The fear of loss and disagreement is amicably settled between the parties.
- Predictable decision – Unlike trial, letter is prepared by involvement of both ends and result is predictable.
- Quick decision – As compared to trial, mutual agreement provides quick decision whereas court shall taker between 1-3 years.
- Private affair – Mutual understanding and agreeing on it helps in maintaining privacy and prevents unnecessary negative highlight in the society.
- Prevents expense – Unnecessary court trials can be prevented which is a solid money affair.
While creating a settlement letter for a client, lawyer examines the complete story and justifies weather such settlement is in best interest of its client or not. However, final decision to accept the final settlement or now is based on client’s decision himself.