Deed of Settlement and Release
Drafting the deed that records an agreed settlement and releases the claims between the parties, so the matter is closed on paper as well as in practice.
- Drafted to the terms the parties have agreed
- Releases scoped to the right claims and parties
- Payment, confidentiality and default terms
Closing a Dispute
What a Deed of Release Does
A deed of settlement and release records the terms the parties have agreed and releases the claims behind the dispute. Once signed, it is generally a complete answer if either side later tries to reopen those claims.
It is made as a deed rather than an ordinary agreement so that it binds without each side giving something in return, and so a longer limitation period applies to enforcing it.
The value is in the drafting. A release that is too narrow leaves claims open. One that is too wide can give up rights a party never meant to give up, including claims about matters that have nothing to do with the dispute.
What the Deed Covers
The Terms That Matter
Each deed is drafted to the specific settlement.
Parties and Capacity
Who is bound, including related companies, directors and guarantors where they need to be released or to give a release.
Settlement Sum
The amount, the payment dates, where it is paid and whether it is paid in 1 amount or by instalments.
The Release
The claims being released, defined by reference to the dispute so the release is neither too narrow nor too wide.
What Is Not Released
Carve-outs for obligations that continue, such as the settlement terms themselves or an ongoing lease or contract.
Confidentiality
Whether the terms of the settlement stay confidential, and any agreed wording the parties can use if asked.
Default Terms
What happens if a payment is missed, including whether the release only takes effect once payment is received.
Step by Step
How We Prepare the Deed
From agreed terms to signed deed.
Send the Agreed Terms
Heads of settlement, emails or a summary of what has been agreed, together with the background documents.
First Draft
We prepare the deed and explain the release and any terms that need a decision.
Amendments
The draft goes to the other side, with 1 round of amendments incorporated into a final version.
Signing
The deed is signed with the formalities a deed requires, whether by individuals or companies.
Exchange and Payment
Signed copies are exchanged and the settlement sum is paid on the agreed terms.
Our fixed fee for a deed of settlement and release is set out on our pricing page.
View Our Fixed FeesWhen the Release Takes Effect
A common drafting point is whether the release operates on signing or only once the settlement sum is paid. If it operates on signing and the payment never arrives, the paying party may already have been released.
Unless the parties agree otherwise, we draft the release to take effect on payment, with the right to enforce the deed if payment is not made.
Commercial documents we prepare on a fixed fee.
Frequently Asked Questions
Is a deed of settlement different from a deed of release?
How does a deed have to be signed?
Can we use a template?
What kinds of disputes do you prepare deeds for?
Do you negotiate the settlement?
Is the settlement confidential?
Ready to Put the Settlement in Writing?
Send us the agreed terms and we will prepare a deed that closes the matter properly.
Book a Free Consultation