Settlement Offer

This Settlement Offer is for use by a party that has encountered some kind of dispute with another party, and wants to make an offer to settle.

Some parties choose to settle a dispute rather than to engage in legal proceedings, which can be stressful, expensive, and time consuming. Achieving an early settlement may benefit both parties, by reducing their overall costs, and enabling them to leave the dispute behind them.

Making an offer to settle may have significant ramifications for a party, so if the party preparing this Settlement Offer has any concerns regarding their legal circumstances or the remedies available to them, they should seek legal advice.

There are many circumstances in which parties may attempt to settle a dispute. For example, let's imagine that Andrew and Beth are involved in a minor car crash, and both allege that the other person caused it. Arguing this in court is likely to be stressful, expensive, and time consuming, and by the time they are finished, Andrew and Beth might both find that they have spent more money in court and legal costs than it would have cost them to just repair their own cars. Therefore, Andrew and Beth might be interested in trying to settle this matter out of court. Either Andrew or Beth could use this letter to make an offer to the other person, to find a mutually acceptable solution.

How to use this document

Once a party (the "Sender") decides they want to make a settlement offer, they can prepare this letter, setting out the various terms which they are proposing. Within the letter, they can specify how long the offer is open for, meaning that the offer expires on that specified date.

The letter can then be delivered to the other party (the "Receiver"). The Sender may keep a copy for their own records.

The Receiver may respond within the specified timeframe, either to accept the offer in the terms that the Sender has proposed, or making some kind of counter offer.

Many parties that actually reach an agreement about how the matter will be settled, then prepare a Deed of Release (Mutual) or a Deed of Release (General One Way) to ensure that each party is released from any further obligations in relation to the matter.

Applicable law

Depending on the nature of the dispute, there are many different areas of Australian law which may apply.

If this Settlement Offer is being used in relation to a contractual dispute, then general principles of contract law, as provided by the common law, may apply.

In addition, if this Settlement Offer is being used in relation to some other dispute, for example, in connection with damage to property or personal injuries, then various other bodies of law may apply. For example, each state and territory has legislation and common law that deals with civil liability, and which may need to be considered.

If the offer of settlement is not accepted, and the dispute continues, then laws relating to evidence and civil procedure may also apply.

If in doubt, seek legal advice.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.