The Limited Release Settlement Agreement serves as a crucial tool in U.S. dispute resolution, particularly when parties wish to settle specific claims while preserving rights to other potential claims. This document is commonly used in situations where there may be multiple or ongoing disputes, but parties wish to resolve only certain matters. The agreement typically includes detailed provisions about settlement terms, specific claims being released, payment arrangements, and any conditions attached to the settlement. It's essential to carefully draft this document to ensure it clearly delineates which claims are being released and which are preserved.
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1. Parties: Identification of all parties to the settlement agreement
2. Background/Recitals: Context of the dispute and reason for settlement
3. Definitions: Key terms used throughout the agreement
4. Settlement Payment: Details of payment amount, method, and timing
5. Release Provisions: Specific claims being released and scope of release
6. Non-Admission of Liability: Statement that settlement does not constitute admission of wrongdoing
7. Governing Law: Jurisdiction and applicable law
8. Execution: Signature blocks and date of agreement
1. Confidentiality: Terms regarding keeping the settlement and its terms private
2. Non-Disparagement: Provisions prohibiting parties from making negative statements about each other
3. Tax Implications: Specific provisions regarding tax treatment of settlement payments
4. Return of Property: Requirements for returning any company or party property
1. Schedule A - Released Claims: Detailed list of specific claims being released
2. Schedule B - Payment Schedule: Detailed breakdown of payment installments if applicable
3. Schedule C - Confidential Information: Definition and scope of confidential information
4. Appendix 1 - Related Entities: List of affiliated entities covered by the release
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