How to Write a Settlement Agreement

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Step 1

Negotiate the basic elements of a settlement of the dispute with the other party.

Step 2

Prepare a letter of agreement summarizing the points of the oral agreement reached. Because a settlement agreement takes time to draft, you do need to get the general points in writing immediately.

Step 3

Use the letter of agreement as the outline to draft the settlement agreement.

Step 4

List the parties to the contract in the first paragraph of the settlement agreement. If there is a lawsuit pending, include the caption from the case as well as the case number.

Step 5

Set forth the specific items of agreement negotiated between the parties. Place each point of agreement in a separate paragraph in the document for clarity.

Step 6

Include a clear statement that the settlement document is the entire agreement between the parties.

Step 7

Include individual signature blocks for all parties to the agreement.

Step 8

Execute the settlement agreement. Both parties need to sign the document. A notary public is not legally required. The parties can elect to sign the document in front of a notary public if they so desire.


  • "Settlement Agreements" Richard A. Rosen"; 2000
  • "Civil Procedure Examples & Explanations"; Joseph W. Glannon; 2008
  • "Civil Procedure"; Stephen C. Yeazell; 2008


About the Author

Mike Broemmel began writing in 1982. He is an author/lecturer with two novels on the market internationally, "The Shadow Cast" and "The Miller Moth." Broemmel served on the staff of the White House Office of Media Relations. He holds a Bachelor of Arts in journalism and political science from Benedictine College and a Juris Doctorate from Washburn University. He also attended Brunel University, London.

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