Settlement Offer Letter

This Settlement Offer Letter is a document used to propose settlement terms between parties to a dispute. This document is usually, but not always used when a dispute has been filed in court. One party sends this letter in an attempt to make out of court settlement. This document opens the line of communication between the parties to the dispute to see if their dispute can be resolved amicably.

This document is used to begin a dialogue to resolve the dispute between the parties as and it is not a contract. This is because the party sending this letter sends this letter to propose terms of full settlement, and if the other party agrees to these terms, the parties can draw up a final Settlement Agreement.

The following applies to this document:

• It should be used during the negotiation stage only and not when the parties have concluded on their terms of the settlement.

• The party sending this document will enter the contact details of the parties and the terms of settlement.

• If the dispute is already in court, the details regarding the court case, including the name of the case, suit number, the name and address of the court should also be entered in the document.

How to use this document

This document is used by either party to a dispute, especially the party proposing to offer a settlement in form of monetary compensation or other form of compensation to the other party. The purpose of this document is to propose settlement out of court. This is because due to how contentious litigation can be, some parties will prefer to offer money or other compensation to avoid going to court.

After completing this document, it should be printed and signed by the party sending this letter. After signing, each party should keep one signed copy for their record. If the other party accept the terms proposed in this letter, a formal and binding Settlement Agreement should be drawn up to finalize the settlement.

Applicable law

The general rules of contract apply to this document.

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.