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Settlement Agreement

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Create a settlement agreement to resolve a dispute by recording payment terms, undertakings, releases, confidentiality, withdrawal of claims, and full-and-final settlement.

A Settlement Agreement is used where parties agree to resolve a dispute without continuing litigation, arbitration, debt collection, disciplinary proceedings, commercial disagreement, family dispute, or other conflict. It records the settlement terms, obligations, payment arrangements, releases, confidentiality, and consequences of default.

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South African legal context (2026 checklist)

The agreement should state whether it is in full and final settlement and whether liability is admitted or denied. It should also record what claims are released, what obligations remain, whether proceedings will be withdrawn, and what remedies apply if a party defaults. Where the matter is already before a court or forum, the parties should consider whether the settlement should be made an order or award.

  • South African common law of contract
  • South African law of compromise and settlement
  • Magistrates’ Courts Act 32 of 1944
  • Superior Courts Act 10 of 2013
  • Arbitration Act 42 of 1965
  • Labour Relations Act 66 of 1995, where an employment dispute is settled
  • National Credit Act 34 of 2005, where a credit agreement is involved
  • Prescription Act 68 of 1969
  • Electronic Communications and Transactions Act 25 of 2002
  • Protection of Personal Information Act 4 of 2013

Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.

Typical questions we'll walk you through

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Who are the parties to the dispute?
Who are the parties to the dispute?
What dispute, claim, matter, debt, contract, or litigation is being settled?
What dispute, claim, matter, debt, contract, or litigation is being settled?
Is there already a court case, CCMA matter, arbitration, or attorney correspondence?
Is there already a court case, CCMA matter, arbitration, or attorney correspondence?
What amount will be paid, if any?
What amount will be paid, if any?
When and how will payment be made?
When and how will payment be made?
What non-payment obligations must be performed?
What non-payment obligations must be performed?
Is the settlement in full and final settlement?
Is the settlement in full and final settlement?
Will either party admit liability?
Will either party admit liability?
Must any claim, complaint, summons, or application be withdrawn?
Must any claim, complaint, summons, or application be withdrawn?
Will confidentiality or non-disparagement apply?
Will confidentiality or non-disparagement apply?
What happens if a party breaches the settlement?
What happens if a party breaches the settlement?
Should the settlement be made an order of court or arbitration award?
Should the settlement be made an order of court or arbitration award?

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