Document background
The Settlement Agreement Contract is a crucial legal instrument in Saudi Arabia used to formally document the resolution of disputes between parties without (or as a result of) court proceedings. This document type is essential when parties wish to settle their differences through mutual agreement rather than litigation or arbitration. It must comply with Saudi Arabian law, including both civil law requirements and Sharia principles, making it particularly important to include specific provisions that ensure enforceability within this jurisdiction. The agreement typically covers various aspects including financial settlements, mutual releases, confidentiality obligations, and future conduct of the parties. It's commonly used in commercial disputes, employment matters, construction conflicts, and financial disagreements, providing a legally binding framework that prevents future litigation on the settled matters.
