When reviewing a settlement agreement, there are several key things to look for:
- Release of claims: The settlement agreement should clearly state that the parties are releasing all claims against each other related to the dispute being settled. This means that neither party can bring any further legal action related to the dispute.
- Payment terms: If the settlement involves payment of money, the agreement should specify the amount and the payment terms, including any deadlines for payment.
- Confidentiality: If confidentiality is important to one or both parties, the agreement should include a confidentiality clause that prohibits the parties from disclosing the terms of the settlement or any information related to the dispute.
- Non-disparagement: The agreement may include a non-disparagement clause that prohibits the parties from making negative or harmful comments about each other.
- Scope of agreement: The settlement agreement should clearly define the scope of the settlement and what is included in the resolution of the dispute. This helps to avoid any confusion or misunderstandings later on.
- Governing law and jurisdiction: The agreement should specify the governing law and jurisdiction that will apply in the event of any disputes arising from the settlement agreement.
- Signatures: The settlement agreement should be signed by both parties to indicate their agreement to the terms. It is also important to ensure that the signatories have the authority to bind their respective organizations.
It is always a good idea to have an attorney review the settlement agreement before signing to ensure that all necessary terms and protections are included.
