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Pre Litigation Settlement Agreement for Singapore

Pre Litigation Settlement Agreement Template for Singapore

A Pre-Litigation Settlement Agreement under Singapore law is a formal document that records the terms of settlement between parties who have a dispute but have not yet commenced formal legal proceedings. It typically includes detailed terms of settlement, mutual releases, and confidentiality provisions, governed by Singapore contract law principles and relevant statutes including the Civil Law Act and Mediation Act 2017. The agreement serves to prevent future litigation and provides certainty and finality to the parties' dispute.

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Pre Litigation Settlement Agreement

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What is a Pre Litigation Settlement Agreement?

The Pre-Litigation Settlement Agreement is utilized when parties wish to resolve their disputes without resorting to formal litigation in Singapore courts. This document is particularly valuable for preserving business relationships and avoiding the costs and uncertainty of court proceedings. It must comply with Singapore contract law requirements and typically includes provisions for settlement terms, releases, confidentiality, and payment arrangements. The agreement provides a legally binding framework for dispute resolution while maintaining confidentiality and commercial relationships.

What sections should be included in a Pre Litigation Settlement Agreement?

1. Parties: Full identification of all parties involved in the settlement, including registration numbers for companies and identification/passport numbers for individuals

2. Background: Recitals detailing the dispute's nature, any prior negotiations, and current status

3. Definitions: Key terms used tHRoughout the agreement

4. Settlement Terms: Detailed terms of settlement including payment amounts, timelines, and methods

5. Release and Discharge: Mutual release of claims related to the dispute

6. Confidentiality: Terms regarding confidentiality of the settlement and its terms

7. Governing Law: Specification of Singapore law as governing law

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

1. Non-Admission of Liability: Statement that settlement does not constitute admission of liability. Include when party wishes to explicitly preserve position that no liability is admitted

2. Tax Implications: Treatment of tax consequences of settlement. Include when settlement involves significant monetary compensation

3. Non-Disparagement: Agreement not to make negative statements about other parties. Include in sensitive cases or where reputation management is important

4. Future Cooperation: Terms for ongoing relationship or cooperation. Include when parties will continue to have business relationships

What schedules should be included in a Pre Litigation Settlement Agreement?

1. Payment Schedule: Detailed breakdown of payment terms and installments if applicable

2. Release Documentation: Forms or documents to be executed to effect release

3. Dispute Documentation: Key documents relating to the underlying dispute

4. Corporate Authorizations: Board resolutions or other corporate approvals if parties are companies

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

Singapore

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions

























Clauses

























Industries

Civil Law Act (Cap. 43): Primary legislation governing civil law matters in Singapore, providing fundamental legal framework for civil disputes and settlements

Contracts Act (Cap. 53): Key legislation governing contract formation, validity, and enforcement in Singapore, essential for ensuring settlement agreement meets basic contractual requirements

Limitation Act (Cap. 163): Establishes time limits for bringing legal claims, crucial for determining validity of claims being settled

Evidence Act (Cap. 97): Governs admissibility and handling of evidence, relevant for documenting and proving terms of settlement

Mediation Act 2017: Provides framework for mediation processes and enforcement of mediated settlement agreements in Singapore

SIMC Rules: Singapore International Mediation Centre Rules governing mediation procedures and settlement protocols

State Courts Practice Directions: Guidelines on Alternative Dispute Resolution procedures in Singapore State Courts

Rules of Court 2021 (Order 42 Rule 5): Specific provisions regarding enforceability of settlement agreements in Singapore courts

Contract Formation Requirements: Legal principles requiring clear consideration, certainty of terms, and capacity of parties for valid contract formation

Release and Discharge Provisions: Essential settlement agreement components that formally release parties from claims and establish discharge of obligations

Teams

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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