A settlement can be drawn up between the parties to the lawsuit. According to this document, the debtor must fulfill these obligations. It should contain information about the fine, which is imposed in case of violation of the conditions. A sample settlement is presented in the article.
Benefit of the document
Making a settlement is beneficial for both parties. If the plaintiff and the defendant have a single opinion on the content of the document, and the court accepts these conditions, then this will allow:
- Reduce the cost of paying for the services of lawyers and lawyers, or establish a procedure for bearing these costs. If the agreement does not include clauses on the distribution of legal costs, the plaintiff and defendant themselves pay these costs.
- Reduce the time to resolve a dispute in which the parties have claims for unfulfilled obligations.
- Creditors who are involved in a bankruptcy case retain interests. This happens in cases where creditors cannot rely on the amount of compensation greater than that specified in the settlement. In this case, it is better to conclude an agreement if the creditor compromises with the debtor.
In many cases, the parties decide to draw up an agreement. At the same time, it does not differ in compilation, the difference lies only in the content.
When do you need to enclose a document?
A sample settlement may be required in the following cases:
- When considering the case by the court of first instance.
- If a court decision is appealed by appeal or cassation.
- After the bailiffs received the writ of execution and the execution of the judicial act began.
- When making a decision of the arbitral tribunal and submitting an application for its execution.
What is included in the document?
A settlement is a deal that suits both parties. The document may have different points that are in a simple contract. The legal provisions of contracts, including provisions on freedom of contract, apply to the agreement. The main thing is that the content does not contradict the law, otherwise the court may not approve it.
A model amicable settlement consists of fines for violation of conditions. In case of refusal to fulfill obligations, the penalty shall be recovered in the suit. In addition to the rules mentioned above, the rules for approving major transactions and related party transactions apply to the document.
Before an agreement is signed, you should find out if this approval is required or not. The court cannot approve this document if there is no approval, because the transaction is considered to be disputable, and it does not have the right to make an initiative to declare it invalid.
The model settlement agreement includes additional conditions relating to the specified requirements, but not included in the lawsuit. For example, if a lawsuit was filed to recover a debt, then information on the payment of interest is entered into the agreement. Parties may independently make conditions.
What does agreement mean?
If the document is concluded, then this means:
- Termination of the dispute between the parties.
- Prohibition of filing a claim for the same requirements.
- The need to indicate additional conditions in the content of the agreement.
Although the agreement presupposes an equal distribution of disputes, it is not considered grounds if one party has a more favorable position and the court approves this fact. When considering the approval of this document, the court checks:
- Can representatives sign this act.
- The presence of the right to dispose of property specified in the agreement, whether there are no encumbrances.
- Compliance of the text with the law.
- Are the interests of others affected.
The sample of the settlement in the arbitration court will be the same as in other cases. If there are points that do not comply with the law and violate the rights of others, then they should be deleted. After the consent of the parties, the document is approved. If the agreement is signed not by the head, but by the representative, then they indicate in the power of attorney that he has the right to do so. Conditions should not be met before the court approves the document. Indeed, in the event of a refusal, the funds paid will be recovered as unjustified enrichment.
Nuances
In addition to filling out a settlement agreement, there may be other difficulties in this matter. It often happens that one side delays the matter. In this case, the party that wants to quickly resolve this process may require a draft settlement agreement. A sample of this document is similar to a contract.
If it is not drawn up, the conscientious person shall have the right to an application for refusal to postpone the case. It can inform the court that the applicant is unscrupulous. When considering such a statement, the court accepts the will of the parties. If the court concludes that the parties cannot agree on a ceasefire, then it rejects this statement.
Spelling
A sample settlement agreement on the division of property or other business is drawn up approximately the same. The following sections are required:
- Information about the court and the plaintiff. These are the details of the parties. They are indicated on the left side of the top sheet.
- In the middle of the sheet indicate "Settlement."
- Then comes the text of the document with a detailed description of the situation. There may be several sections.
- The signatures of the parties are indicated at the end.
A model settlement agreement in an arbitration court or any other court is generally accepted. The document indicates the signatures of the general directors and their representatives. The agreement includes the full amount of debt. The parties may conclude an agreement for the whole amount or for a part. The agreement may include information that is not in the lawsuit. There should be an indication of the circumstances. It is necessary to fix the data on the distribution of costs. After writing, a statement of amicable settlement is filed with the court, a sample of which is in the article.
Document Approval
Parties should prepare 3 copies of the agreement. One is granted to the defendant, the second for the plaintiff, and the third for the lawsuit. Signatures must be put in advance or during the trial. If the document is signed in advance, but the parties did not come at the meeting, then the court will refuse to approve it.
If changes were required, the application must again be submitted. The model of a settlement in court will be the same as for the first time. The first will be canceled, and the new approved.
Consequences of violation of conditions
The party to the transaction may file a request for the execution of the terms of the agreement. In case of refusal to fulfill the requirements, a compulsory recovery occurs voluntarily. If the conditions are violated, creditors should not again file claims for performance of obligations.
If the documentation is prepared on bankruptcy, then creditors can go to court without terminating the settlement agreement. The same requirements should be set as in the document. Then the court shall issue a writ of execution for the recovery of outstanding debt.
Appeal of determination
If a party does not agree with the content and requirements set forth in the document, it has the right to appeal the decision on its approval. To do this, you need to contact the cassation instance within a month.
It is not possible to appeal the settlement agreement separately. There is the possibility of filing an application for review of the case due to newly emerged circumstances. This method is used if the document is appealed by the company for reasons of violation of the approval of this transaction. Agreements on improper application of substantive law are also canceled.
Termination
This document may be terminated. If this is applied to all lenders and authorized bodies, then the court resumes insolvency proceedings. The court regards this as non-execution of the document.
The agreement is not terminated when the court introduces the proceedings regarding the debtor, it is used in a new bankruptcy case. In these cases, the authorities whose requirements are indicated may report claims in the new insolvency process. The composition and size will be the same as in the terminated agreement.
How is the termination of the contract? This is done according to the following instructions:
- Disagreements are considered in the court that made the decision in the insolvency case.
- Signatures are put by competitive lenders or authorized bodies that have not achieved the requirements of the contract.
- The court is considering the application.
- A determination is made. The defendant must execute it immediately.
- The judgment may be appealed.
The court may refuse to terminate the settlement agreement. The preparation of this document allows you to fulfill the requirements. This will save time on litigation and not violate the rights of the parties.