Settlement Agreement
A settlement agreement is a contract in which disputing parties define consideration and mutual releases to resolve specified claims without further litigation. Use this when two parties want to settle a pending or threatened claim without admitting liability. It typically exchanges payment or performance for a full mutual release and nondisparagement.
What's included
A ready-to-use settlement agreement covering recitals describing the underlying dispute, settlement payment or performance obligations, mutual release of claims through a defined date, with signature fields already placed for Party A and Party B. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Recitals describing the underlying dispute
- Settlement payment or performance obligations
- Mutual release of claims through a defined date
- Confidentiality and nondisparagement
- No admission of fault
- Governing law and dispute resolution for breach
What you'll fill in
[Party A Name][Party B Name][Dispute Description][Settlement Amount][Payment Deadline][Release Effective Date][Governing State/Jurisdiction]Legal summary
Each party gives up listed claims in exchange for the agreed consideration; breaching payment or confidentiality may revive certain remedies. Signing is binding only if both parties sign and consideration is delivered.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Settlement Agreement legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Settlement Agreement?
This template includes signature fields for Party A and Party B — already placed — plus 7 placeholder fields to fill in before you send it.
Can I edit this Settlement Agreement before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Settlement Agreement?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Generate a Settlement Agreement for an unpaid invoice dispute with a lump-sum payment in 30 days.”
“Explain whether a general release covers future unknown claims in this template.”
“Adapt for installment payments tied to continued confidentiality.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.