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Disputed Account Settlement
Resolve disputes over financial accounts with this comprehensive Disputed Account Settlement Template.
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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: __________________________
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Disputed Account Settlement
DISPUTED ACCOUNT SETTLEMENT FAQ
What is a Disputed Account Settlement?
A Disputed Account Settlement is a formal agreement between parties involved in a financial dispute, often related to unpaid invoices, contested charges, or unclear account balances. It sets clear terms for resolving the issue without litigation.
Why is a Disputed Account Settlement important?
It prevents costly legal battles, preserves business relationships, and provides a legally binding record of the resolution. It also ensures both parties agree to final terms, including payment schedules and waivers of future claims.
When should you use a Disputed Account Settlement?
Use this agreement when disputes arise over account balances, billing errors, or unpaid obligations, especially when both parties are open to negotiating a settlement rather than pursuing court action.
What should a Disputed Account Settlement include?
The agreement should include a description of the dispute, settlement amount, payment terms, confidentiality provisions, and mutual releases of liability.
Is a settlement agreement legally binding?
Yes. Once signed, it becomes enforceable in court, provided all parties enter into it voluntarily and its terms comply with applicable laws.
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