Settlement agreements are resolutions between disputing parties regarding a specific legal case. These legal contracts aim to help disputing parties reach an agreement that works in everyone’s favor and can prevent long, drawn-out court proceedings. Here are some essential things to know before signing a settlement agreement.
Understand the Terms
One of the most important elements of signing a settlement agreement is understanding the terms. They make up the agreement, such as the amount one party will pay the other, the timeline for payments, and what the payment is for. It’s necessary to go through these terms with a fine tooth comb so you know exactly what they are stating. You never want to agree to something before you read it or understand it. It’s also beneficial to ask your lawyer for legal advice when going through the terms so they can help you determine if these terms will work in your best interest or not.
Negotiate if Necessary
The next thing to know about settlement agreements is you can negotiate if necessary. If you are unhappy with the terms, you can propose a counteroffer and negotiate until both parties meet a legal agreement.
If you choose to negotiate, it’s in your best interest to do so with an attorney. One of the major mistakes you want to avoid when negotiating settlements is doing so without the assistance of an attorney. Most people don’t have a lawyer’s legal knowledge and expertise, so you’ll want one present when negotiating your terms with the other party to get the best result.
Be Sure Before Signing
You should feel confident before signing a settlement agreement. Settlements are notorious for being very difficult to change once signed. Therefore, you want to ensure you are happy with the terms and agreement before signing. You had the chance to make any necessary changes to the legal contract during negotiation and mediation. Avoid waiting until after you sign the agreement to decide if you want to make changes. If you have any reservations or hesitations about your agreement, you should seek legal counsel to get guidance and direction before signing.
Now that you’re aware of what to know before signing a settlement agreement, you can proceed with the process more confidently. It’s in your best interest to hire a lawyer or seek legal advice when dealing with legal cases.
