A Pre Litigation Settlement Agreement is utilized when parties wish to resolve their disputes without resorting to formal court proceedings in England and Wales. This document is particularly valuable when there is a clear dispute but parties prefer to avoid the time, cost, and uncertainty of litigation. The agreement typically includes detailed terms of settlement, releases of claims, confidentiality provisions, and any specific obligations of the parties. It provides a formal framework for dispute resolution while maintaining the relationship between parties where possible. This type of agreement is commonly used across various sectors and can be particularly effective in commercial disputes where maintaining business relationships is important.
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1. Parties: Identification of all parties to the agreement
2. Background: Context of the dispute and reason for settlement
3. Definitions: Key terms used throughout the agreement
4. Settlement Terms: Core settlement provisions including payment terms
5. Release: Mutual release of claims
6. Confidentiality: Terms of confidentiality regarding the settlement
7. Governing Law: Specification of applicable law and jurisdiction
1. Non-admission of Liability: Statement that settlement does not constitute admission of liability
2. Tax Implications: Used when settlement payments have tax considerations
3. Non-disparagement: Used when parties agree not to speak negatively about each other
4. Future Cooperation: Used when ongoing cooperation is required
1. Payment Schedule: Details of settlement payment structure and timing
2. Claims Summary: List of claims being settled
3. Agreed Statement: Any agreed public statements about the settlement
4. Related Agreements: List of any associated agreements affected by the settlement
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