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Settlement Term Sheet Template

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  1. Templates
  2. Contracts
  3. Settlement Term Sheet Template


Settlement Term Sheet Template

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This settlement term sheet agreement is between two parties, [Sender.Company] and [Client.Company], also known as lead plaintiff and defendant, and this agreement refers to the lawsuit case number (Number) and lawsuit caption (insert details).

This agreement is herein referred to as case name [Sender.Company] vs. [Client.Company] for the (matter of the litigation), on the date (insert date), and the terms of this written agreement are as follows:


Both parties agree that the settlement amount is (Amount) dollars. The payment terms are as follows:

  1. Full payment amount will be reflected in an escrow account, (add details of the escrow account), once approval has been granted from the district court.

  2. The payment does not include attorneys' fees, and is only the settlement amount arising from this case.

  3. The total number of payments would be (Amount).

  4. The payment schedule would be (insert payment schedule).

  5. [Client.Company] will be paying off all third party liens, including (names of third party liens) [Client.Company] also agrees to bear taxes on all proceeds.

  6. If the settlement is not completed for any reason, all money in the escrow account would be transferred to [Sender.Company] within (Amount) amount of days, or based on the payment schedule, which would be (insert payment schedule).

  7. If payment is not submitted into the escrow account by [Sender.Company] within 10 days of receiving preliminary permission from the district court, [Client.Company] has permission to take matters to court, or to agree upon a new settlement agreement and payment schedule with [Sender.Company].


Both parties will maintain confidentiality until the material terms of this settlement are agreed upon. After the documents have been submitted to the district court, both parties may issue a public release statement to show good faith, with terms of the statement will be agreed upon at a later date.

The confidentiality agreement is a mutual agreement between [Sender.Company] and [Client.Company]. Attorneys, advisors, and immediate family are not subject to the confidentiality agreement. In case of a breach of the confidentiality agreement, the responsible party would be requested to pay up to (Amount) amount.

Attorneys’ fees

Both parties agree to pay their own attorneys’ fees, and [Client.Company] acknowledges that [Sender.Company] will not bear any partial or full costs of attorneys’ fees.

Settlement terms

  1. Add terms about the waiver.

  2. Add terms about the general release.

  3. Add terms about being able to sue or not.

  4. Add terms about arbitration.

  5. Add terms about the enforceability of the settlement agreement.

  6. Add terms about the admission of liability.

  7. Add terms about good faith.

  8. Add terms about modification of deadlines.

  9. Add terms about the written agreement.

  10. Add terms about the dismissal of the litigation.

  11. Add terms about all things necessary, as it would be a legally binding settlement if you receive approval with the court order.


Once the court order granting approval of the settlement agreement is received, both parties agree that [Sender.Company] will be sending the agreed-upon settlement amount to [Client.Company], through an escrow account, details of which are (details of the escrow account), within 10 days.

Both parties agree they will put forth their best effort in moving the proceedings of this settlement agreement to completion in a timely manner. Both parties also agree that [Sender.Company] will be following the payment schedule, which is (insert payment schedule).

Disputes, Approval, and Execution


Any disputes arising from the contract would be resolved by [Arbitrator.FirstName][Arbitrator.LastName], who would be acting as an unbiased arbitrator. Alternatively, both parties can also get legal remedies by taking the matter of the dispute to the court.


The approval of the settlement term is subject to the court order received from the district court. Both parties will exercise their best effort to expedite the process. If court approval is not received, material terms and payment schedules will be discussed again. The agreement is only considered as a binding agreement with court approval. ​


Once both parties agree to all material terms listed herein, sign the document (be it through physical or electronic signature), and receive court approval, executing this settlement agreement will begin.

Please provide confirmation of agreeing to the terms of this agreement by signing the signature block below.





Settlement Term Sheet Template

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