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Settlement and Release Agreement document preview

What is a Settlement and Release Agreement?

When you've gotten involved in a lawsuit and it's no longer worth the fight, a Settlement and Release Agreement can help you end it quickly. Maybe you're the defendant and want to settle outside of court. Or maybe you filed the suit and want to define the terms where you'll settle. Nobody wants a long, drawn-out court drama. Using a Settlement and Release Agreement can help everyone get on with their lives. 
Things can get ugly when you've been drawn into a legal battle with another business. Sometimes it turns out to be a losing proposition for all involved. It's tough to forgive and forget, but with a Settlement and Release Agreement, at least you can start the paperwork. It doesn't matter if you're the defendant or the one doing the suing. You both want to settle things as quickly as possible. Civil lawsuits are expensive for everyone involved. Why waste money? Settling outside of court is faster, easier, and kinder to your bank account. There's a good chance that the other person would rather settle, too. So it's time for a little negotiation. What's it going to take for a settlement? A Settlement and Release Agreement can help you figure that out.

When to use a Settlement and Release Agreement:

  • You are a Defendant in a lawsuit and want to settle outside the court.
  • You filed a lawsuit against a business and you would like to outline the terms under which you will agree to settle the suit.

Sample Settlement and Release Agreement

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Settlement and Release Agreement


This Settlement and Release Agreement ("Agreement") is entered into on by and between , hereinafter ("Complainant"), of , , , and , hereinafter ("Defendant") of , , . (Complainant and Defendant are collectively referred to as "the Parties"). This Agreement is effective upon full execution.



  A. On or about , Complainant filed against Defendant a legal action in the of , where it now bears the caption , Plaintiff, vs. , Defendant, case number: , (the "Litigation").


  B. In the action described above, Complainant sought compensation for various alleged as well as various statutory penalties.


  C. Defendant denies and continues to deny in every particular the Claims (described below) of Complainant in connection with the action described above.


  D. The parties desire to bring the action described above to a conclusion, and to avoid the further costs and expenses incident to its prosecution and defense. The making of this Agreement shall not be deemed an admission of any liability or wrongdoing whatsoever on the part of Complainant or Defendant.


Therefore, the parties agree as follows:





Defendant shall pay to Complainant within days of receipt by Defendant's counsel of this Agreement signed by Complainant and his attorney, by certified check all of which shall be mailed to Complainant's attorney, . The payment shall be deemed to include and settle all Claims in connection with this matter including attorney's fees, alleged and statutory penalties.


Complainant shall execute the necessary documents and take all steps necessary to dismiss with prejudice the action described above.



Complainant, on behalf of himself and his heirs, hereby releases and forever discharges as applicable Defendant and Defendant's parents, subsidiaries, franchisors, franchisees, and affiliated companies, and each of their former and present agents, directors, officers, employees, attorneys, and insurers, as well as their heirs and assigns (collectively "Releasees"), from any and all claims of any nature whatsoever, whether known or unknown and whether before a court or an arbitrator, which include but are not limited to, any and all claims between Complainant and Defendant in regards to Case: and any other statutory or non-statutory tort or contractual claim; any claim of a violation of any federal, state, municipal, or local statute, ordinance, or regulation pertaining to the cause of the action (the "Claims"); that Complainant has and may hereafter have against Releasees because of any alleged acts or omissions whatsoever from the beginning of time to the date of the execution of this Agreement.


Complainant understands that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.


Section 1542 Waiver

By signing this Agreement, Complainant acknowledges that they have read and fully comprehend Section 1542 of the California Civil Code, which reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." Complainant waives all rights under California Civil Code Section 1542.



The parties agree all facts and circumstances surrounding the dispute resolved by this Agreement and the existence, terms, conditions, and negotiation of this Agreement shall be kept strictly confidential.


Litigation Costs and Attorney's Fees

Complainant acknowledges that payment to him of the amount set forth in the paragraph title Payments above is for costs and full settlement of all Claims released herein. The parties shall each bear all other costs and expenses, including litigation costs and attorney's fees that they have and will incur up to and in the execution and administration of this Agreement.


Representations and Warranties

Complainant represents and warrants that there has been no assignment or transfer of any interest in the Claims that he may have against Releasees, and Complainant agrees to indemnify and hold Releasees harmless from any liability, demands, damages, costs, expenses, and attorney's fees incurred by Releasees as a result of any asserted interest in the Claims that he may now have or have had at any time against Releasees if such interest is acquired by assignment, transfer, or otherwise.


Complainant represents and warrants that he has not filed or instituted any claim before any court, administrative agency, arbitrator, or other tribunal against Releasees. Complainant further covenants that he shall not institute or maintain any other claim against Releasees arising from any facts occurring prior to the execution of this Agreement.


The parties agree that in the event of any dispute or proceeding concerning this Agreement, its validity, interpretation, enforcement, or breach, the prevailing party shall recover reasonable attorney's fees and costs in connection with any such dispute.


Governing Law

The parties agree that law shall govern the construction, interpretation, and enforcement of this Agreement.



The parties agree that if any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction or an arbitrator to be invalid, void, or unenforceable, the remaining terms and provisions of this Agreement shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated.


Entire Agreement

The parties agree that this Agreement contains the entire Agreement of the parties hereto, and supersedes all other Agreements and understandings, whether written or oral, covering the subject matter hereof. The parties warrant that there are no representations, Agreements, arrangements, or understandings, oral or written, between them relating to the subject matter contained in this Agreement which are not fully expressed herein.


Amendments or Modifications

The parties agree that any amendments or modifications to this Agreement shall be deemed null and void unless such amendments and modifications are in writing and signed by Complainant and by the president of Defendant.


Attorney Explanation to Complainant and Defendant


  A. , an attorney licensed to practice law in this state, has fully explained this Settlement and Release Agreement to Complainant, who in turn acknowledged an understanding of said Settlement and Release Agreement and the legal effect thereof prior to Complainant's signature below.


  B. , an attorney licensed to practice law in this state, has fully explained this Settlement and Release Agreement to Defendant, who in turn acknowledged an understanding of said Settlement and Release Agreement and the legal effect thereof Defendants signature below.






By: Date:




By: Date:








By: Date:




By: Date:



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