If you and the other side agree to settle a small claims dispute, you should write up an agreement to clearly state what you've agreed to. In this blog, we will share some tips on how to write up an effective small claims settlement agreement. 😎📝🤝
No one wants to go to court if both parties can reach a mutual agreement. Therefore, it's generally a good idea to try to resolve a small claims dispute through negotiation before going to court. One way to do this is to write an agreement outlining the terms of the settlement.
It's recommended to write up an agreement to document what you've agreed to.
Because if there are questions later, both parties know what you agreed to do. Also, if the agreement is not carried out later, then you'll have a written agreement that you can use to file a small claims case later.
Here are some tips for writing up an effective small claims agreement:
Tip #1 - Identify the parties involved
Make sure to include the full names and contact information of all parties involved in the dispute.
Tip #2 - Describe the dispute
Summarize the issue that led to the dispute, including any relevant dates or events.
Tip #3 - Outline the terms of the agreement
Clearly state what each party is agreeing to do or not do as part of the agreement. This could include:
The agreed-upon amount of money
How the total amount shall be paid (e.g., a one-time payment or pay over time)
How the payment shall be made (e.g., cash, certified check, personal check, electronic transfer, or others)
A deadline for fulfilling the terms of the agreement.
Tip #4 - Include any other relevant details
You may want to include any additional provisions or conditions that are important to the resolution of the dispute. For example:
What will happen if everything happens as you agreed? For example, the small claims court case will be dismissed.
What will happen if the agreement is not carried out? For example, you will file a small claims case, or if a payment is missed, the entire amount will be due immediately.
Tip #5 - Have both parties sign and date the agreement
Both parties should sign and date the agreement and keep a copy for their records.
It's important to note that an agreement reached through negotiation is not legally enforceable unless it is reduced to writing and signed by both parties. If the other party refuses to sign an agreement, you may still be able to use it as evidence in court to show that you attempted to resolve the dispute. However, it's always best to try to reach a mutually agreed-upon resolution if possible.
Here you go! Following these tips above, I hope you will be able to write up an effective agreement to settle your small claims dispute out of court :)
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