The settlement agreement is the document in which the parties to the litigation identified for the settlement of mutual claims. For example, if the subject of the claim is the recovery of a debt, the parties may negotiate the terms of repayment. The settlement agreement also may be provided for failure by the plaintiff of claims, debt forgiveness, the transfer of property instead of money, etc.
Execution of the settlement agreement is a right and not an obligation of the parties. The settlement agreement is in the resolution of civil and commercial law, and bankruptcy. To reach a friendly settlement at any stage of the litigation. For example, the parties can reach a compromise, not only in solving the conflict in the court of first instance, but during the review of the decision. Perhaps the settlement agreement and at the stage of enforcement proceedings.
The settlement agreement executed by the parties in writing as an ordinary contract. First are written the document title, date and place of detention. This is followed by a preamble, which includes information about the claimant and the defendant (creditor, debtor). In the main part of the settlement agreement, the points prescribed procedure for resolution of the dispute. Complete the settlement agreement details and signatures of the parties.
The settlement agreement comes into force after its approval by the court. To this end, parties shall provide to the court a mutual petition. Considering the settlement agreement, the court must ensure that it does not contradict the law and does not violate anyone's rights or interests. Approval of a settlement agreement formalized by a court ruling that can be appealed in the established order. In the productive part of the definition are included the terms of the settlement agreement. With the approval of the settlement agreement, the proceedings shall be terminated.