What is a Deed of Release?
Generally, a contract is either a simple contract (that requires consideration) or it can be by way of a Deed that does not require consideration. A Deed is in writing and needs to be executed in accordance with the relevant legislation e.g. s 127 of the Corporations Act 2001 (Cth) or otherwise in accordance with State / Territory Law for individuals.
A Deed of Release is a contract that provides for the release of rights in order to document a settlement. Typically, a party might pay a sum of money to the other party in order to settle the rights had in respect of a breach of contract, tort, or perhaps claim under legislation.
Buy a Deed of Release Template
Litigant has invested significantly into developing a Deed of Release Template that:
- Can be bought via our templates page (coming soon)
- Prompts you to answer a series of questions concerning the parties to your dispute (so that multiple paying and receiving parties can be accomodated)
- Facilitates payment to multiple recipients by numerous paying parties
- Seeks to comprehensively settle all claims whether in existence or not yet made with respect to the matters in dispute (or proceeding) as the case may be
- Releases the rights mutually and contains covenants that seek to prevent parties from trying to agitate further claims (or go about getting third parties to procure claims)
- Tries to bar all claims threatened
- Permits parties to "save face" in that the matters can be disposed of without parties having to admit liability - a major hurdle to getting to a settlement in some cases
- Excludes pre-contractual representations (to the extent that can be done) so that the aim is to focus and rely on the terms of the settlement itself
- And much more.
Most Cases Resolve with a Deed of Settlement
Most disputes settle. To make sure that when that happens you do not end up in another argument, dispute or lawsuit you will need to make sure that you wrap it all up correctly with a well crafted Deed of Release (aka litigation settlement deed).
Standard Terms in a Deed of Release
Whilst it is true that you should ideally finalise the dispute with a Deed of Release the reality is that when you are dealing with a powerful adversary they may just try and force their own standard terms upon you. Great caution is needed when you deal with a party who wants to adhere to their own standard terms at all costs.
Ideally, you should aim for a Deed of Release so that all relevant parties can be bound by the arrangement agreed upon.
What Terms Normally Go Into A Deed of Settlement?
Typically the Deed of Release would contain some or all of the following:-
- The names of the relevant parties;
- The addresses of the parties;
- Recitals also known as the background often setting out what the disputes are, and what proceedings have been taken;
- A Definitions section so that terms are used consistently;
- The relevant payment provisions setting out who will pay what to whom e.g. Party 1 pays Party 2 the sum of "x" dollars into bank account "y" by a specified date;
- Mutual Releases;
- Bar to proceedings;
- Indemnities;
- Confidentiality;
- Non-disparagement;
- etc.
It is also very important to have the Deed of Release properly executed in front of witnesses so that there is no dispute about its acceptance.
Tailored Help For A Deed of Settlement
Some cases require dedicated assistance as their requirements are unique. If your commercial dispute falls into that category then why not call us to see how we can help you craft the right terms and conditions to try and provide comfort.
For more help finalising your dispute contact our litigation lawyers in Sydney, NSW.