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Settlement Release Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Settlement Release Agreement

"I need a Settlement Release Agreement under Saudi Arabian law to resolve an ongoing construction dispute between our company (Al Madina Contractors LLC) and a subcontractor (Eastern Building Services Co.), settling claims worth SAR 2.5 million relating to project delays and defective works, with payment to be made by March 15, 2025."

Document background
The Settlement Release Agreement is a crucial legal instrument in Saudi Arabia used to formally document the resolution of disputes between parties and provide legal finality to conflicts. It serves as a binding contract that outlines the terms of settlement, including monetary compensation, mutual releases, and any continuing obligations. This document must strictly comply with Saudi Arabian law, including Sharia principles, the Civil Procedures Law, and relevant commercial regulations. The agreement is commonly used in various contexts, from commercial disputes to employment matters, and can involve both corporate entities and individuals. It typically includes essential provisions such as settlement payments, comprehensive releases, confidentiality obligations, and enforcement mechanisms. The document's primary purpose is to prevent future litigation while providing legal certainty to all parties involved in the settlement.
Suggested Sections

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

2. Background: Description of the dispute or claims being settled, including relevant dates and circumstances

3. Definitions: Key terms used throughout the agreement

4. Settlement Payment: Details of the settlement amount, payment method, and timing

5. Release Provisions: Scope of the release, including specific claims being released and parties being released

6. Non-Admission of Liability: Statement that the settlement does not constitute admission of liability by any party

7. Confidentiality: Obligations regarding confidentiality of the settlement terms and dispute details

8. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes

9. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties

10. Execution: Signature requirements and execution formalities compliant with Saudi law

Optional Sections

1. Non-Disparagement: Mutual obligations not to make negative statements about other parties, used in sensitive or high-profile disputes

2. Return of Property: Provisions for returning documents or property, relevant when physical items or sensitive information are involved

3. Future Cooperation: Requirements for parties to cooperate in related matters, useful in complex commercial or regulatory situations

4. Tax Implications: Addressing tax consequences of the settlement, important for large financial settlements

5. Insurance Matters: Provisions related to insurance claims or coverage, relevant when insurance is involved in the dispute

6. Shariah Compliance Declaration: Explicit confirmation of Shariah compliance, particularly important for financial settlements

7. Continuing Obligations: Identification of any obligations that survive the settlement, used in complex commercial relationships

Suggested Schedules

1. Schedule 1 - Settlement Payment Details: Detailed breakdown of settlement amounts and payment schedule

2. Schedule 2 - Released Claims: Comprehensive list of specific claims being released

3. Schedule 3 - Related Proceedings: List of any legal proceedings to be withdrawn or terminated

4. Schedule 4 - Required Notices: Forms of any required notices or withdrawals of proceedings

5. Schedule 5 - Authorization Documents: Copies of authority documentation for signatories

6. Appendix A - Form of Release: Standard form of release to be executed by relevant parties

7. Appendix B - Settlement Compliance Certificate: Form of certificate confirming completion of settlement obligations

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

Relevant legal definitions






























Clauses































Relevant Industries

Construction

Financial Services

Manufacturing

Oil & Gas

Real Estate

Technology

Healthcare

Retail

Transportation

Professional Services

Education

Telecommunications

Mining

Agriculture

Insurance

Relevant Teams

Legal

Compliance

Risk Management

Executive Leadership

Human Resources

Finance

Operations

Commercial

Corporate Governance

Dispute Resolution

Relevant Roles

Legal Counsel

General Counsel

Chief Legal Officer

Compliance Officer

Risk Manager

Chief Executive Officer

Chief Financial Officer

Human Resources Director

Commercial Director

Operations Manager

Contract Manager

Claims Manager

Dispute Resolution Manager

Company Secretary

Settlement Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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