Sample terms of settlement – debt
This is an example of a completed terms of settlement. It is important to complete the terms of settlement using your own details and based on your own circumstances. If you need more help, get legal advice. Do not try to file this sample.
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 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. Meena and Fiona negotiate and finally reach an agreement at mediation. Fiona and Meena put their agreement in writing. They prepare the terms of settlement.
TERMS OF SETTLEMENT
PARTIES:
MEENA VISHWANA ('Meena')
AND
FIONA FRAME trading as Fantastic Florists ('Fiona')
This is an agreement to settle any and all claims relating to the web design and IT support services provided by Meena to Fiona.
Fiona agrees to pay Meena the amount of $3,500 on or before 31 December 20xx as a full and final settlement of this matter.
If Fiona fails to pay $3,500 by the agreed date, Meena reserves the right to start court action to recover the full $4,000 debt claimed by Meena against Fiona, along with any interest and legal costs, without further notice to Fiona.
The terms of this agreement are confidential.
The parties have read and understood the terms of settlement and agreed to these terms.
M. Vishwana | Fiona Frame |
Meena Vishwana
Date: 24 November 20xx
| Fiona Frame
Date: 24 November 20xx
|
| Witness: Ella Mavis | Witness: Bob Atkins |