This form is a Settlement Agreement usable in cases where licensing, patents, or commercial trade secrets are a factor.
Delaware Settlement Agreement
State:
Multi-State
Control #:
US-TS10045
Format:
Word;
PDF;
Rich Text
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FAQ
Delaware law provides parties with significant flexibility to restrict or eliminate fiduciary duties in LLC agreements. Sophisticated parties regularly take advantage of this flexibility by eliminating fiduciary duties of members and directors of LLCs.
To be enforceable under Code of Civil Procedure §664.6, the material terms of the settlement must be explicitly defined in the agreement. A settlement agreement, like any other contract, is unenforceable if the parties fail to agree on a material term or if a material term is not reasonably certain.
The covenant not to sue was set forth in a customary drag-along provision in a stockholders' agreement, which provided that if specified board and stockholder approvals were obtained, the signatory stockholders agreed to take various actions in support of the transaction, including voting in favor of the transaction.
The settlement agreement can be voided if it was formed through fraud or misrepresentation. If a person can refuse to sign a settlement agreement in the first place depends on how it was formed. If there was an oral agreement a signature may not be required for it to be enforced.
Special damages are those damages that are the natural but not the necessary result of the wrongful acts.5. Consequential damages, a species of special damages, are damages not directly flowing from the breach, but which the defendant knew or should have known would result therefrom.6.
1. An agreement that ends a dispute and results in the voluntary dismissal of any related litigation. Regardless of the exact terms, parties often choose to keep their settlement agreements private. 2. In business law, the payment, satisfaction, and closing of an account.
2d 75, 84 (Del. 1992) (explaining that the duty of candor ?represents nothing more than the well-recognized proposition that directors of Delaware corporations are under a fiduciary duty to disclose fully and fairly all material information within the board's control when it seeks shareholder action?) (emphasis added).
The covenant not to sue was set forth in a customary drag-along provision in a stockholders' agreement, which provided that if specified board and stockholder approvals were obtained, the signatory stockholders agreed to take various actions in support of the transaction, including voting in favor of the transaction.
