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Pre Settlement Agreement for Canada

Pre Settlement Agreement Template for Canada

A Pre-Settlement Agreement under Canadian law is a formal document that establishes the framework and ground rules for settlement negotiations between disputing parties. This document outlines the terms and conditions under which parties will negotiate, including confidentiality obligations, information exchange procedures, and the without prejudice nature of discussions. It operates within the Canadian legal framework, considering both federal and provincial jurisdictions, and can be adapted for use in common law provinces or Quebec's civil law system. The agreement serves as a crucial stepping stone toward reaching a final settlement while protecting all parties' interests during the negotiation process.

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What is a Pre Settlement Agreement?

The Pre-Settlement Agreement is a crucial document used in Canadian dispute resolution processes when parties are preparing to enter into serious settlement negotiations but need to establish ground rules and protections before proceeding. This document is particularly valuable in complex disputes where significant information exchange may be required, or where multiple parties are involved. It provides a structured framework for negotiations while preserving parties' rights and maintaining confidentiality. The agreement incorporates relevant Canadian federal and provincial legal requirements, including civil procedure rules and alternative dispute resolution principles. Typically used before finalizing a full settlement agreement, this Pre-Settlement Agreement helps manage expectations, establish timelines, and create a secure environment for open negotiations.

What sections should be included in a Pre Settlement Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Outlines the context of the dispute and the parties' intention to explore settlement

3. Definitions: Defines key terms used throughout the agreement

4. Purpose and Scope: States the objective of the pre-settlement agreement and its scope

5. Duration and Termination: Specifies the time period for settlement negotiations and conditions for termination

6. Confidentiality: Details obligations regarding confidentiality of negotiations and information shared

7. Without Prejudice: Confirms that discussions and proposals are without prejudice to legal rights

8. Good Faith Negotiations: Commits parties to negotiate in good faith toward a final settlement

9. Information Exchange: Outlines the process for sharing relevant information between parties

10. Costs: Addresses how costs of the pre-settlement process will be handled

11. Governing Law: Specifies the applicable law and jurisdiction

12. Entire Agreement: Confirms this document represents the entire agreement regarding pre-settlement arrangements

13. Execution: Signature blocks and execution details

What sections are optional to include in a Pre Settlement Agreement?

1. Mediation Provisions: Include when parties agree to use mediation as part of the settlement process

2. Expert Determination: Include when technical matters require expert evaluation

3. Standstill Agreement: Include when parties agree to pause legal proceedings during negotiations

4. Third Party Rights: Include when other parties' rights might be affected by the settlement

5. Insurance Company Involvement: Include when insurers are involved in the settlement process

6. Interim Arrangements: Include when temporary arrangements are needed during negotiations

7. Partial Settlement Provisions: Include when parties may settle some issues while reserving others

8. Language Requirements: Include for agreements in Quebec or involving multiple languages

What schedules should be included in a Pre Settlement Agreement?

1. Schedule A - Dispute Summary: Detailed description of the underlying dispute and claims

2. Schedule B - Document List: List of documents to be exchanged during negotiations

3. Schedule C - Timeline: Proposed timeline for negotiations and key milestones

4. Schedule D - Contact Details: Complete contact information for all parties and representatives

5. Appendix 1 - Negotiation Protocol: Detailed procedures for conducting settlement negotiations

6. Appendix 2 - Confidentiality Terms: Detailed confidentiality obligations and procedures

7. Appendix 3 - Form of Settlement Agreement: Template or key terms for the final settlement agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
























Clauses
























Relevant Industries

Legal Services

Insurance

Financial Services

Construction

Real Estate

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Healthcare

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Legal

Compliance

Risk Management

Corporate Affairs

Dispute Resolution

Contract Administration

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Corporate Governance

Regulatory Affairs

Business Operations

Relevant Roles

Legal Counsel

Corporate Lawyer

Litigation Manager

Risk Manager

Claims Manager

Compliance Officer

General Counsel

Legal Director

Settlement Officer

Mediation Coordinator

Contract Manager

Chief Legal Officer

Dispute Resolution Specialist

Corporate Secretary

Legal Operations Manager

Industries









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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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