Sample terms of settlement – debt
This is an example of a terms of settlement. It is important to complete your terms of settlement using your own details and based on your own circumstances. If you need more help, get legal advice.
This sample is based on the following case study:
Case study - Meena and Fantastic Florists
Meena runs a small business from home, doing website design and IT support for other small businesses. One of her regular clients, Fantastic Florists, has failed to pay her invoice in the amount of $4,000 for the website she built. Meena sent a couple of reminder letters but there has been no response. She tried to contact Fiona from Fantastic Florists by telephone but could not reach her. Meena sent a letter of demand to Fantastic Florists. Fiona from Fantastic Florists offered to pay for part of the outstanding invoice. Meena refused Fiona's offer and started legal action in the Small Claims Division of the Local Court to recover the outstanding amount from Fantastic Florists. At the first court date, Fiona and Meena come to an agreement to settle Meena's claim. They write up terms of settlement.
TERMS OF SETTLEMENT
PARTIES:
MEENA VISHWANA (Plaintiff)
AND
FIONA FRAME trading as Fantastic Florists (Defendant)
LOCAL COURT FILE NUMBER: SC20xx/766
Judgment to be entered for the plaintiff for $3,500.
The defendant will pay the plaintiff the amount of $3,500 on or before 31 December 20xx.
The defendant will not be liable to pay any additional interest if she pays $3,500 by 31 December 20xx.
The terms of this agreement are confidential.
Each party will pay their own costs.
M. Vishwana Meena Vishwana
Date: 24 November 20xx
| Fiona Frame Fiona Frame
Date: 24 November 20xx
|
Witness: Ella Mavis
E. Mavis | Witness: Bob Atkins
Bob A.
|