What is a commercial settlement agreement?
Agreement to settle a dispute: A commercial settlement agreement is a contract between two parties where a dispute has arisen about an area of the commercial relationship or contract they have entered into. A settlement agreement can come into question, for example, where payment of an invoice is overdue and the debtor disputes the payment. The agreement sets out the terms on which the parties can agree to resolve the issue, usually for a sum of money less than what is owed or what the value of the dispute actually is.
For more information about commercial settlement agreements, read this comprehensive guide.
Why should I settle a dispute with this commercial settlement agreement?
Save money: A settlement agreement template is usually offered and viewed as an alternative method of dispute resolution to pursuing a claim in court, and costs both parties involved substantially less in legal fees to arrange (unless they can’t agree on the terms!)
Increase your chances: You should not use this settlement agreement template if you want to pursue a claim in court (or some other legal remedy), but note that it will shed good light in the eyes of the court on the party that is open to an agreement before taking things to court.
Time-efficiency: Resolving commercial disputes through traditional legal channels can be an incredibly time-consuming process. Court proceedings, hearings, and trials can stretch on for months or even years. In contrast, opting for a commercial settlement agreement allows parties to expedite the resolution process. With pre-defined clauses and straightforward customisation options, you can reach a settlement agreement swiftly, saving valuable time and resources that can be better invested in your business.
Our legal experts have provided their top tips for creating a win-win commercial settlement agreement, you can read it here.
How does Docue’s commercial settlement agreement work?
Top-notch technology: With Docue’s high-quality template, you can create a valid settlement agreement easily and quickly in just a few clicks. The intuitive tick-box and text-box options streamline the entire experience, ensuring that you cover all necessary details.
Extensive model clauses: Our dynamic commercial settlement agreement covers, among other things, the following matters:
- Settlement sum & other settlement terms;
- Waiver of claims;
- Agreement not to take legal action;
- Warranties and authority;
- Indemnities;
- No admission;
- Confidentiality; and
- General terms.
Created by lawyers: Our model clauses are drafted and maintained by lawyers. If you wish, you can always edit our model clauses according to your preferences or write your own clauses.
Read this blog for further guidance into the essential clauses that commercial settlement agreements should include.
When should this template not be used?
Employment-related settlements: This commercial settlement agreement is specifically designed for resolving disputes within business-to-business relationships and commercial transactions. If you are dealing with an employment-related dispute involving an employee, our settlement agreement template is tailored for employment disputes. This template is crafted to address the unique complexities of employer-employee relationships, ensuring a fair resolution while safeguarding your business from potential legal risks. By choosing the right template for your specific needs, you can navigate employment disputes effectively, promoting a harmonious work environment while protecting your organisation’s interests.
Note: Please note that this commercial settlement agreement should not be used by unincorporated businesses or consumers, as the liability exposure and legal rights those categories of parties have are different to incorporated businesses.
Why Docue?
Quick and simple to use: With Docue, you can create a commercial settlement agreement in no time. This commercial settlement agreement includes model clauses designed by qualified lawyers to help you draft the contract yourself and tailor it to your needs.
Full contract process: Once you have created a contract that is tailored to your circumstances using the commercial settlement agreement, you can send the contract to the other party for e-signing. In addition to collecting signatures electronically, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Transparent pricing: At Docue, we believe in providing transparent and cost-effective pricing options for our services. We understand that affordability is a key consideration for businesses of all sizes. That's why we offer competitive and transparent pricing plans tailored to meet your specific needs. With our pricing structure, you have the flexibility to choose a plan that aligns with your budget and requirements. We provide clear and upfront information about our pricing tiers, ensuring there are no hidden fees or unpleasant surprises along the way!
Sign up for a free trial today, and see just how easy it is to create your own legal documents!
Tags: commercial settlement agreement, settlement agreement for commercial disputes˙
