A Third Party Settlement Agreement is used when resolving disputes or claims that involve parties who, while not original signatories to a contract, have acquired rights under it. Common in England and Wales, these agreements are particularly relevant where complex commercial relationships exist or where the rights of multiple parties need to be addressed. The document typically includes detailed settlement terms, releases, payment schedules, and confidentiality provisions, ensuring all parties' interests are protected while providing a comprehensive resolution to the dispute.
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1. Parties: Identification of all parties involved in the settlement, including the third party beneficiary
2. Background: Context of the dispute and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Settlement Terms: Core settlement provisions including payment terms and obligations
5. Release Provisions: Terms of release from claims and liabilities
6. Confidentiality: Obligations regarding confidentiality of settlement terms
7. Governing Law: Specification of English and Welsh law as governing law
1. Tax Provisions: Include when settlement payments have tax implications or when tax consequences need to be specifically addressed
2. Insurance Provisions: Terms relating to insurance coverage and claims - include when settlement involves insurance matters
3. Non-Disparagement: Provisions preventing parties from making negative statements - include in high-profile or sensitive settlements
1. Schedule of Payments: Detailed breakdown of settlement payments and timing
2. Schedule of Released Claims: Specific claims being settled and released
3. Form of Release: Standard form release document to be executed
4. Related Agreements: Copies of any relevant underlying agreements
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