A litigation and settlement agreement, often referred to as a settlement agreement or a settlement agreement and release, is a legally binding document that outlines the terms and conditions for resolving a legal dispute outside of court. Its primary purpose is to define the agreed-upon terms of settlement, including any financing agreements, release of claims, confidentiality, and any other conditions that the parties involved have negotiated and accepted.
When parties in a legal dispute reach a settlement agreement, it typically leads to the dismissal of the pending litigation. This means that the lawsuit comes to an end, and the parties agree not to pursue the matter further in court. The settlement agreement serves as a resolution to the dispute, allowing the parties to avoid the time, expense, and uncertainty of a trial.
Settlement agreements often include confidentiality agreement clauses, which restrict the parties from disclosing the terms and details of the settlement to others. Confidentiality is crucial because it helps protect the privacy and reputation of the parties involved. It also prevents one party from using the terms of the settlement against the other in future legal actions. However, the extent of confidentiality can vary and should be explicitly defined within the agreement. You can also explore free contract templates exclusively made for business and professional purposes by Legitt team.