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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."
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
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
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
Construction
Financial Services
Manufacturing
Oil & Gas
Real Estate
Technology
Healthcare
Retail
Transportation
Professional Services
Education
Telecommunications
Mining
Agriculture
Insurance
Legal
Compliance
Risk Management
Executive Leadership
Human Resources
Finance
Operations
Commercial
Corporate Governance
Dispute Resolution
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
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