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Why you need a Deed of Settlement and Release
A Deed of Settlement and Release is a legal document that contains terms and conditions between disputing parties. Common disputes revolve around unpaid loans, unpaid work and employment contracts. For example, an employer could request their employee to sign a Deed of Settlement and Release to ensure that the employee cannot make any claims after their employment has ceased. This article will briefly explain the advantages of preparing a Deed of Settlement and Release, the key terms and conditions and how you can obtain a copy for yourself.
Advantages of a Deed of Settlement and Release
Drawing a Deed of Settlement and Release has four distinct advantages:
1. It is a cost-effective solution in comparison to resolving a dispute in Court.
2. It can be drafted quickly provided that all the terms and conditions have been negotiated.
3. It offers both parties certainty in their respective obligations as the Deed of Settlement and Release is written and signed. Too often agreements to settle a dispute are made verbally, which creates unnecessary risk.
4. It is legally binding, which means the Deed of Settlement and Release is recognised by the Court. For example, if Party A failed to pay Party B according to the Deed of Settlement and Release, then Party B can submit a claim in Court and rely on the Deed of Settlement and Release as strong supporting evidence. The Court can make an order to reflect the terms of the Deed of Settlement and Release and grant Party B remedies to enforce that order.
Key provisions
A Deed of Settlement and Release typically includes the following key provisions:
a) Recitals. This provision is a summary of the dispute including the parties’ names and key events with dates.
b) Settlement terms. This provision could be as simple as a single sentence stating that Party A pays a lump sum payment to Party B on a specific date.
c) Mutual releases. Under the Deed of Settlement and Release, Party B will ‘release’ Party A from future claims, demands and actions. In other words, Party B waives any right to sue Party A and releases Party A from any liability for any losses in respect of the claim. Conversely, Party A will release Party B.
d) Confidentiality. Both parties have an obligation to not disclose information relating to the Deed, clients, suppliers and other financial affairs.
e) Non-disparagement. Both parties have an obligation to not communicate in any way any statement that might reasonably be constructed to be negative to any other party. The purpose of this clause is to preserve the reputation of both parties, keeping the dispute resolution process clean.
f) Jurisdiction. Importantly, the Deed of Release and Settlement should note which court has exclusive jurisdiction to settle any dispute or claim. Jurisdiction means the scope of a court’s authority to decide matters. Often the jurisdiction given to a court is based on geographical area, for example, the laws of New South Wales, Australia.
How we can help
The good news is that our law firm offers online services so that you can create legal documents conveniently at home, without the need to meet a lawyer in-person near you. Our cutting-edge Deed of Settlement and Release is suitable for individuals and companies. Access the Deed of Settlement and Release now by clicking on the button below.
Deed of Settlement and Release
If the other party has requested you to sign a Deed of Settlement and Release, it is prudent that you allow a lawyer to review it and obtain legal advice.
Disclaimer:
This publication provides general information of an introductory nature and is not intended and should not be relied upon as a substitute for legal or other professional advice. While every care has been taken in the production of this publication, no legal responsibility or liability is accepted, warranted, or implied by the authors or our firm, and any liability is hereby expressly disclaimed.
Ge Wu is the solicitor director of Legal Point Lawyers & Attorneys. He has been admitted to practise law since 2005. Throughout his practice, Ge Wu predominantly practises in the areas of Property Law, Immigration Law, Commercial Law, Civil Litigation and Family Law.
His experience covers all aspects of property law, commercial/retail lease, immigration law and civil litigation, while at the same time, he also has experience in family law, criminal law and other areas such as will-drafting and general advice.
He has frequently been instructed by corporate clients in pre-acquisition due diligence reports, structuring property development, land/shopping centre acquisitions, G.S.T. and stamp duty advice for buying/selling businesses, as well as share transfers and company re-structures.
Ge Wu has been appointed as Notary Public since 2011 and started to provide Notary Public service to clients from different cultural backgrounds.