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Settlement Offer Letter Template
Make a clear, written settlement proposal to resolve a dispute with this Settlement Offer Letter Template.
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Settlement Offer Letter Template
[Your Name / Business Name]
[Address]
[City, State, ZIP]
[Phone] | [Email]
Date: [Date]
To: [Recipient Name / Business Name]
[Recipient Address]
[City, State, ZIP]
Subject: Settlement Offer – [Brief Dispute Description]
Reference (Optional): [Case/Account/Invoice #]
1. Settlement Communication (Optional)
This letter is submitted as a settlement communication for the purpose of resolving a dispute. It is not an admission of liability.
2. Background
This matter relates to [brief description of dispute], including events on or around [Date(s)]. The Parties disagree on [high-level issue], and I am proposing this offer to resolve the matter without further escalation.
3. Settlement Offer
I am willing to resolve this matter on the following terms:
3.1 Settlement Amount/Consideration.
☐ Payment of $[Amount]
☐ Other consideration: [Describe]
3.2 Payment Timing.
☐ Lump sum due by [Date]
☐ Payment plan: $[Amount] on [Date], then $[Amount] on [Dates]
☐ Other: [Timing]
3.3 Payment Method.
☐ Bank transfer ☐ Cashier’s check ☐ Check ☐ Online payment ☐ Other: [Method]
3.4 Mutual Release (Proposed).
Upon payment (or completion of agreed consideration), the Parties will sign a written settlement agreement that includes a mutual release of claims relating to this dispute, to the extent permitted by law.
3.5 Confidentiality (Optional).
The Parties agree to keep the settlement terms confidential, except as required by law or to accountants/attorneys.
3.6 Non-Disparagement (Optional).
The Parties agree not to make statements intended to harm the other Party’s reputation related to this matter.
3.7 No Admission.
This settlement is a compromise of disputed claims and is not an admission of liability.
4. Deadline to Respond
Please respond to this offer by [Deadline Date]. If the offer is not accepted by that date, it may be withdrawn.
5. Next Steps
If you accept, I propose that we finalize and sign a written settlement agreement reflecting the terms above and exchange payment/consideration promptly.
Sincerely,
[Your Name]
[Title]
[Your Business Name]
Signatures
[Your Name]
Title: [Title]
Date: [Date]
Signature: ___________________________
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Today
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Easy-to-understand jargon
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Learn more about
Settlement Offer Letter Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
SETTLEMENT OFFER LETTER TEMPLATE FAQ
What is a settlement offer letter?
A Settlement Offer Letter is a written proposal to resolve a dispute without going to court. It outlines the proposed settlement terms — such as a payment amount, payment schedule, mutual releases, confidentiality, and a deadline to accept.
When should you send a settlement offer letter?
Send it when there is an active dispute (contract, payment, property, employment, or personal issues) and you want to resolve it through negotiation. It can also be used before filing a lawsuit or after a demand letter, and it helps create a record of a reasonable attempt to settle.
What should be included in a settlement offer?
A typical offer includes: the parties, a short description of the dispute, the settlement amount or terms, payment method and timeline, what each side gives up (release of claims), confidentiality (optional), non-disparagement (optional), and what happens if the offer is not accepted.
Is a settlement offer legally binding?
The letter alone is often not binding unless it clearly states it is intended to be binding and contains all required terms. Many parties treat it as a negotiation step and finalize a separate settlement agreement once the offer is accepted.
Should you include “without prejudice” or “confidential settlement communication”?
In many places, settlement discussions are protected or treated differently in court, but the rules vary. This template includes optional language you can use to mark the letter as a settlement communication, but you should confirm what wording fits your jurisdiction.
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