The Small Claims Settlement Agreement is a crucial document used in Hong Kong's legal system when parties involved in a Small Claims Tribunal dispute reach an out-of-court settlement. This document type is specifically designed for claims not exceeding HK$75,000, making it particularly relevant for small businesses, consumers, and individuals seeking to resolve disputes efficiently and cost-effectively. The agreement is commonly used across various sectors for settling disputes related to goods and services, minor property damage, or contractual disagreements. It must comply with Hong Kong's Small Claims Tribunal Ordinance (Cap. 338) and general contract law principles. The document serves as a final and binding resolution, preventing future litigation on the same matter and providing a clear framework for implementing the settlement terms.
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1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses
2. Background: Brief description of the dispute and the fact that it was filed in the Small Claims Tribunal, including the case number if applicable
3. Definitions: Defines key terms used in the agreement for clarity and certainty
4. Settlement Sum: Clearly states the agreed settlement amount and whether it includes costs and interest
5. Payment Terms: Specifies how and when the settlement sum will be paid, including payment method and deadline
6. Release: Mutual release of claims related to the dispute
7. Confidentiality: Basic confidentiality obligations regarding the terms of settlement
8. Entire Agreement: Confirms this document represents the entire agreement between the parties
9. Governing Law: Specifies Hong Kong law as governing law and jurisdiction
10. Execution: Signature blocks for all parties
1. Non-Admission of Liability: Optional clause stating that the settlement does not constitute an admission of liability - used when specifically requested by the paying party
2. Return of Property: Include when the settlement involves return of specific items or documents
3. Installment Payments: Detailed payment schedule when settlement is to be paid in installments rather than lump sum
4. Default Provisions: Consequences of failing to pay as agreed - particularly important for installment payments
5. Tax Implications: Include when settlement sum has tax implications that need to be addressed
6. Third Party Rights: Exclusion of third party rights under the Contracts (Rights of Third Parties) Ordinance - include if there are potential third party interests
1. Payment Schedule: Detailed breakdown of installment payments including dates and amounts, if applicable
2. List of Items: Itemized list of any property to be returned or transferred as part of settlement
3. Claim Documents: List of relevant claim documents and case numbers from the Small Claims Tribunal
Relevant legal definitions
Clauses
Relevant Industries
Retail
E-commerce
Construction
Professional Services
Real Estate
Manufacturing
Consumer Goods
Transportation
Hospitality
Small Business and Startups
Financial Services
Insurance
Technology
Education
Relevant Teams
Legal
Customer Service
Operations
Compliance
Risk Management
Collections
Finance
Administration
Retail Operations
Credit Control
Dispute Resolution
Relevant Roles
Legal Counsel
Claims Handler
Customer Service Manager
Business Owner
Operations Manager
Compliance Officer
Risk Manager
Credit Controller
Account Manager
Collections Specialist
Small Business Manager
Retail Manager
Administrative Officer
Contract Administrator
Dispute Resolution Officer
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