Virginia Sample Letter to Attorney Opposite transmitting Settlement Agreement
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FAQ
Settlement agreements, however, are a special kind of contract and therefore must meet other requirements in order to be valid. Consideration: Something of value (either a promise, an act or an object) that a promisor receives from a promisee in return for his promise.
Key elements of a Settlement Agreement Financial compensation: The agreement will set the amount and when the payment will be received. Confidentiality obligations. Restrictive covenants: Specifying any post-employment restrictions or non-compete clauses.
Identify, gather and produce the most important information early. Settlement negotiations are most effective at the proverbial sweet spot, when each side has the information it believes it needs to make a judgment about settlement but before discovery expenses allow the sunk costs mentality to take hold.
The agreement should set forth what money is being paid for, i.e., the type of damages, as well as the claims it is being paid on. If some damages are taxable and some are not, the settlement agreement should set out, in as much detail as possible, the proportions and rationale.
However, if one of the parties fails to follow through with the settlement agreement, the aggrieved party may file a motion in court to enforce the agreement. Generally, the motions requests the court to enter a judgement pursuant to the settlement's terms.
Settlement agreements are contracts. Although the law presumes that settlement agreements are valid, they generally are subject to contract defenses, including mistake, unconscionability, duress, undue influence, and fraud.
To meet the requirements of summary enforcement, an out-of-court written settlement agreement must be signed by the parties themselves and not just their attorneys. In addition, all of the parties to the settlement agreement must sign the agreement and not just the party against whom enforcement is sought.
To execute a settlement between the defendant and plaintiff the terms must be agreed upon by both parties. The defendant agrees to pay money owed to the plaintiff, and the plaintiff forfeits the right to take legal action against the defendant.
