Settlement Agreement Template, Free Download 2026

This Settlement Agreement and Release (this "Agreement") is entered into by and between [____________] ("Party A") and [____________] ("Party B") (collectively, the "Parties") to resolve the dispute described herein.

WHEREAS, a dispute has arisen between the Parties regarding [____________], which [has been / may be] the subject of [litigation in ____________ Court, Case No. ____________ / administrative proceedings / informal dispute]; and WHEREAS, the Parties desire to resolve the dispute fully and finally without admission of liability by either Party.

In consideration of the mutual promises herein, the Parties agree as follows: [Party A shall pay Party B the sum of $__________ / Party A shall perform ____________ / The Parties shall ____________]. Settlement payments shall be made by [____________] on or before [____________]. [The pending litigation shall be dismissed with prejudice within ______ days of execution.]

Each Party hereby releases and forever discharges the other Party and its officers, directors, employees, agents, successors, and assigns from any and all claims, demands, actions, causes of action, damages, liabilities, costs, and expenses, known or unknown, arising out of or relating to the dispute described herein, from the beginning of time through the date of this Agreement. [Each Party expressly waives the protections of California Civil Code § 1542 or equivalent statute: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist."]

This Agreement is entered into for the purpose of compromising disputed claims and shall not be construed as an admission of liability, fault, or wrongdoing by either Party. Neither this Agreement nor any of its terms may be offered as evidence in any proceeding, except to enforce its terms.

The terms of this Agreement shall be kept strictly confidential by the Parties and shall not be disclosed to any third party, except: (a) to the Parties' attorneys, accountants, and tax advisors; (b) as required by law, regulation, or court order; or (c) as necessary to enforce this Agreement. The Parties shall not publicize the existence or terms of this Agreement.

Each Party agrees not to make any disparaging, defamatory, or negative statements about the other Party, its officers, directors, employees, products, or services to any third party. Nothing in this Section shall restrict either Party from providing truthful testimony in any legal proceeding or making truthful statements to government agencies.

Each Party represents that: (a) it has full authority to execute this Agreement; (b) it has not assigned or transferred any claims released herein; (c) it has been advised to consult with an attorney and has either done so or voluntarily chosen not to; and (d) it has read, understands, and voluntarily enters into this Agreement.

In the event of any breach of this Agreement, the non-breaching Party shall be entitled to: (a) specific performance; (b) injunctive relief; (c) actual damages; and (d) reasonable attorneys' fees and costs incurred in enforcing this Agreement. The prevailing party in any enforcement action shall recover its attorneys' fees.

This Agreement shall be governed by the laws of the State of [_____________]. This Agreement constitutes the entire understanding between the Parties, supersedes all prior agreements, and may be amended only in writing signed by both Parties. This Agreement may be executed in counterparts.