Disputed Account Settlement Template

This Disputed Account Settlement Agreement (“Agreement”) is entered into on [Date], by and between:

Party A (Creditor):
Name/Company: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________

Party B (Debtor):
Name/Company: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________

Collectively referred to as the “Parties.”

1. Background

The Parties acknowledge that a dispute exists regarding certain financial transactions or account balances, specifically related to:
[Describe nature of dispute, e.g., unpaid invoices, incorrect billing]

2. Settlement Amount

The Parties agree to settle the disputed account for the total amount of $[Settlement Amount].

Party B shall pay the settlement amount as follows:
☐ Lump Sum Payment due by [Date]
☐ Installment Payments of $[Amount] due [Frequency] until paid in full

3. Mutual Release of Claims

Upon receipt of the full settlement amount, both Parties release and discharge each other from any and all claims, demands, or actions related to the disputed account.

4. Payment Method

Payments shall be made via [Payment Method, e.g., bank transfer, certified check] to the following account or address:
[Account Details or Mailing Address]

5. Confidentiality

Both Parties agree to keep the terms of this Agreement and the underlying dispute confidential, except as required by law or for accounting purposes.

6. No Admission of Liability

This settlement does not constitute an admission of liability or wrongdoing by either Party. It is entered into solely for the purpose of avoiding further dispute and litigation.

7. Breach of Agreement

If Party B fails to make payments as specified, Party A may pursue enforcement of this Agreement, including legal action to recover the full amount originally claimed.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State/Country].

9. Entire Agreement

This document represents the complete understanding between the Parties and supersedes all prior negotiations or agreements related to the disputed account.

10. Signatures

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

Party A Signature: __________________________ Date: _________
Printed Name and Title: __________________________

Party B Signature: __________________________ Date: _________
Printed Name and Title: __________________________