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Small Claims Court Settlement Agreement for the United Kingdom

Small Claims Court Settlement Agreement Template for England and Wales

A Small Claims Court Settlement Agreement is a legally binding document used in England and Wales to formalize the resolution of disputes handled through the small claims track of the County Court. It typically covers claims up to 脙鈥毭偮10,000 and outlines the terms agreed between parties to settle their dispute without proceeding to a full hearing. The agreement includes payment terms, mutual releases, and any specific conditions agreed upon by the parties.

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Small Claims Court Settlement Agreement

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What is a Small Claims Court Settlement Agreement?

The Small Claims Court Settlement Agreement is utilized when parties involved in a small claims dispute in England and Wales reach a mutual agreement to resolve their differences without proceeding to trial. This document is particularly relevant for claims valued up to 脙鈥毭偮10,000 and provides a formal record of the settlement terms, including payment arrangements, timeline for compliance, and mutual releases. It serves as a crucial tool for dispute resolution in the small claims track of the County Court, offering a cost-effective alternative to litigation while maintaining legal enforceability.

What sections should be included in a Small Claims Court Settlement Agreement?

1. Parties: Identification of all parties to the settlement including full legal names and addresses

2. Background: Brief description of the dispute, claim number, and reference to the small claims court proceedings

3. Definitions: Key terms used in the agreement including 'Settlement Sum', 'Claim', and 'Effective Date'

4. Settlement Terms: Core settlement amount, payment terms, and timeline for completion of obligations

5. Release: Mutual release of claims and agreement not to pursue further legal action

6. Execution: Signature blocks, date, and witness provisions if required

What sections are optional to include in a Small Claims Court Settlement Agreement?

1. Confidentiality: Provisions for keeping the settlement terms private between the parties

2. Non-admission: Statement that the settlement does not constitute an admission of liability by either party

3. Costs: Provisions dealing with legal costs and court fees

What schedules should be included in a Small Claims Court Settlement Agreement?

1. Payment Schedule: Detailed breakdown of installment payments including dates and amounts

2. List of Claims: Comprehensive list of all claims and counterclaims being settled

3. Draft Court Order: Template order for court approval to formalize the settlement

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

Civil Procedure Rules (CPR) Part 27: Main procedural rules governing small claims in England and Wales, including specific provisions for case management and hearings

Courts Act 1984: Primary legislation establishing the framework for court operations and jurisdiction in England and Wales

Limitation Act 1980: Legislation setting out the time limits within which different types of legal claims must be brought

Contract Law Common Law Principles: Fundamental principles of contract formation including offer, acceptance, consideration, and intention to create legal relations

County Courts Act 1984: Legislation establishing the jurisdiction and powers of county courts where small claims are typically heard

CPR Practice Direction 27: Detailed guidance supplementing CPR Part 27, providing specific procedures for the small claims track

CPR Practice Direction 40: Guidance on the proper format and handling of judgments and orders in civil proceedings

CPR Part 36: Rules governing formal settlement offers in civil proceedings, including small claims

Consumer Rights Act 2015: Key legislation protecting consumer rights, relevant when one party is a consumer in the settlement agreement

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts, ensuring the settlement agreement terms are fair and enforceable

Misrepresentation Act 1967: Legislation dealing with false or misleading statements made during contract formation, relevant for ensuring settlement terms are based on accurate information

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