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​Sample terms of settlement - car accidents

Form assistance This is an example of a terms of settlement in a claim for the cost of repairs after a car accident. It is important to write the terms of settlement using your own details and based on your own circumstances. If you need more help, get legal advice.

Case study icon

Case studyCase study - Rob and Mick

Rob parked his car at a shopping centre. After checking his mirrors, Rob slowly reversed out of a parking spot at the shops when he suddenly felt a bump. Rob had run into a car that was behind him. Rob does not have comprehensive car insurance. Rob tried to resolve the dispute with Mick and sent him a letter of demand to pay for the cost of repairs to his car. Mick has ignored Rob's phone calls and has not responded to the letter of demand.  Rob started a case in the Small Claims Division of the Local Court. Mick contacts Rob and they come to an agreement to settle Rob's claim. They write up terms of settlement.

TERMS OF SETTLEMENT

PARTIES:

ROB TAYLOR (Plaintiff)

AND

MICK JOHNSTONE (Defendant)

LC20xx/012

  1. ​This is an agreement to settle any and all claims relating to a motor vehicle accident on Tuesday 1 December 20xx at 3.30pm at Burwood between motor vehicle registration ABC 123 belonging to Rob Taylor and motor vehicle registration DEF 456 belonging to Mick Johnstone.

  2. Rob Taylor agrees to accept the amount of $600.00 in full and final settlement of his claim for damages to his vehicle.

  3. Mick Johnstone agrees to pay the amount of $600.00 in instalments of $100 per calendar month starting on 11 January 20xx. The final payment will be made on or by 11 June 20xx.

  4. Mick Johnstone will deposit the amount directly into Rob Taylor's bank account with Westpac (BSB 11111 Account number 1234567890).

  5. If Mick Johnstone fails to pay an instalment by the agreed time, Rob Taylor will be free to recommence legal action to recover the remaining money, along with any interest and legal costs, without notice to Mick Johnstone. 

  6. The terms of this agreement are confidential.

  7. Each party will pay their own legal costs.


___________________

Mick Johnstone
Date:

In the presence of: Ella Mavis

E. Mavis


​____________________

Rob Taylor
Date:

In the presence of: Bob Atkins

Bob A.

​