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Partial Settlement Agreement for the United Kingdom

Partial Settlement Agreement Template for England and Wales

A Partial Settlement Agreement under English and Welsh law is a legally binding document that resolves some, but not all, aspects of a dispute between parties. It allows parties to reach agreement on certain issues while reserving their rights to pursue other matters through litigation or alternative dispute resolution. The document typically includes detailed terms of what is being settled, what remains in dispute, any payment arrangements, and relevant release provisions. It operates within the framework of English contract law and civil procedure rules.

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Partial Settlement Agreement

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What is a Partial Settlement Agreement?

A Partial Settlement Agreement is utilized when parties wish to resolve certain aspects of their dispute while maintaining their rights to pursue others. This document type is particularly useful in complex disputes where settling some issues can reduce costs and risks while allowing continued negotiation or litigation on remaining matters. The agreement, governed by English and Welsh law, must clearly delineate which claims are being settled and which are reserved. It typically includes settlement terms, payment provisions, releases, and may contain confidentiality obligations. The Partial Settlement Agreement helps parties achieve incremental resolution while preserving their position on outstanding issues.

What sections should be included in a Partial Settlement Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the dispute and reason for partial settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Specific matters being settled and terms of settlement

5. Reserved Matters: Matters explicitly excluded from the settlement

6. Payment Terms: Details of any settlement payments

7. Release Provisions: Scope of claims being released

What sections are optional to include in a Partial Settlement Agreement?

1. Confidentiality: Terms regarding confidentiality of the settlement agreement and its terms

2. Tax Provisions: Provisions dealing with tax treatment of settlement payments and tax indemnities

3. Non-disparagement: Provisions restricting parties from making negative statements about each other

4. Costs: Provisions dealing with legal costs and other expenses

What schedules should be included in a Partial Settlement Agreement?

1. Schedule of Settled Claims: Detailed list of claims being settled under the agreement

2. Schedule of Reserved Claims: Detailed list of claims explicitly excluded from the settlement

3. Payment Schedule: Detailed schedule of payment installments, dates, and amounts if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Cost

Free to use
Relevant legal definitions

























Clauses

























Industries

Law of Property Act 1925: Core legislation governing property rights and interests in England and Wales, essential for any settlement involving property or interests in land.

Common Law Contract Principles: Fundamental principles of contract law developed through case law, including offer, acceptance, consideration, and intention to create legal relations.

Civil Procedure Rules (CPR) - Part 36: Rules governing civil litigation in England and Wales, particularly Part 36 which deals with settlement offers and their consequences.

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for settlements affecting rights of parties not directly involved in the agreement.

Limitation Act 1980: Statute setting time limits within which various types of legal claims must be brought, crucial for understanding settlement timing and claim validity.

Settlement Agreements Regulations: Regulations governing the formation and execution of settlement agreements, including requirements for validity and enforceability.

Employment Rights Act 1996: Key employment legislation that may be relevant if the settlement involves employment disputes or termination of employment.

Equality Act 2010: Legislation protecting against discrimination, crucial for settlements involving discrimination claims or equal rights issues.

Without Prejudice Principle: Legal principle protecting settlement negotiations from being used as evidence in court proceedings, encouraging open settlement discussions.

Tomlin Orders: Court orders used to record settlements in litigation, staying proceedings on agreed terms while maintaining court's jurisdiction to enforce.

Tax Legislation: Various tax laws affecting settlement payments, including income tax, capital gains tax, and VAT considerations.

Companies Act 2006: Primary legislation governing company operations in the UK, relevant when settlement involves corporate entities.

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