A Private Settlement Agreement is a contract made between two parties agreeing on a settlement. These agreements are settlements that avoid the parties having to go to court to have their differences settled.
A Private Settlement Agreement is made by one party to another party. It is used for settling a dispute and contains the agreement reached between the parties. It is primarily used for avoiding the intervention of the court system, mainly because court trials are costly and time-consuming.
In order for this agreement to work, a defendant agrees to the plaintiff’s claims. A defendant and plaintiff may deliberate a little before a suitable agreement for both parties is reached. When the dispute resolution is reached, a Private Settlement Agreement is drawn up. Both parties sign the document, and notarization for the document is preferred.
A Private Settlement Agreement is a relatively basic and simple form. It lists the party’s names, the date and the problem being agreed upon. It describes the nature of the dispute and the agreed-upon resolution to the problem. Both parties then sign and date the document.
These agreements are used for many different types of disputes, including minor car accidents, work-related issues and private issues between friends, neighbors and family. Employers might choose these settlements to avoid negative public recognition through the media.
Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.