Agreement To Settle Claim

Sometimes a narrower scope of release is more appropriate, z.B. one that limits release to claim or manner of service. This may be the case, for example. B, where there is an ongoing business relationship. In that case, the complainant and his brother, the second defendant, had a long-standing dispute over the management of their affairs. As a result, the applicant instructed the bank to freeze the commercial bank account. The brothers then agreed to an agreement in which the complainant`s share of the case was purchased by his brother for $1.6 million. As part of the agreement, the applicant agreed to order the bank to cancel the investment bank account in exchange for the payment of an initial dividend. The Brothers entered into an initial settlement agreement setting out these key conditions, which allowed the bank account not to be frozen after the payment of the initial dividend. However, the brothers were unable to agree, as expected, on detailed terms of transaction and the agreement was not reached. The applicant decided to initiate proceedings to recover the amount agreed under the original agreement. In particular, his brother claimed that the initial transaction contract was not binding. The court disagreed.

He noted that the parties to an agreement could intend to be bound without delay, even if other conditions had been agreed or an additional formality had to be met. The lack of a detailed transaction agreement is not a problem, as the original agreement was feasible and secure and, therefore, enforceable by the applicant. The claim could be defined with a letter of claim, but check whether it is broad enough. Have other issues been raised, for example, in the exchange of letters and which should also be clarified? Sometimes, instead of a transaction contract, a deed may be necessary. That will be the case if, for example. B, there is no consideration between the parties. However, claims that are not deemed legal would not be excluded. In this context, a distinction is made between claims that are not deemed (which cannot be excluded) and those that the parties have not considered (which may be excluded). Again, this is the obvious, but check the amount of the bill.

Is that right? Does it include interest, legal fees and VAT? If so, say so. In the heat of the comparison negotiations, remember to make it clear that any agreement is “in accordance with the contract.” This will prevent an interim agreement from becoming immediately binding, as happened in Balbir Singh Chaggar v (1) Raghbir Singh Chaggar (2) Hi-Tech Autoparts Limited [2018] EWHC 1203 (QB). Does the transaction involve a tax debt? Sometimes VAT is payable. Capital gains tax may be due on damages worth $500,000, although plaintiffs may apply for an exemption for professional negligence.