The dispute can be settled through an amicable agreement. This term is usually understood as an agreement on the rights and obligations of each of the parties in order to resolve the conflict.
A settlement can be reached before the court or during the trial, and at any stage (even during the execution of a judicial act). Commercial court is obliged by law to take all measures to reconcile the parties and to facilitate the settlement of the dispute, proceeding from the interests of the persons involved in the case. Reconciliation of the parties in court should be carried out on the basis of the principles of voluntariness, cooperation, equality and confidentiality.
Settlement agreement is an important procedure that reveals the true professionalism of the parties to the dispute, as it allows the parties with the least financial losses to achieve the desired goals.
We recommend that you adhere to the following rules when concluding a settlement agreement:
- The settlement agreement must not contradict the law and violate the rights and legitimate interests of the parties and third parties, even if they do not participate in the dispute.
- The agreement can be signed by persons endowed with separate powers to do so by power of attorney or by virtue of law.
- The agreement must be concluded in writing and contain information agreed by the parties on the conditions, amount and timing of the fulfillment of obligations.
- The conditions must be clear and enforceable so that all parties understand their responsibilities, and their implementation does not directly depend on third-party factors.
- If the settlement is a major or related party transaction, corporate approval is required.
- The agreement should not have signs of donation between legal entities, as it is prohibited by law.
- In case of non-fulfillment of the terms of the settlement agreement, it is subject to compulsory execution.
However, compliance with these conditions does not always guarantee you the conclusion and instant approval of a settlement agreement in court. Most of the work is made up precisely of negotiations between the parties on the terms of a future transaction. In this matter, the involvement of an intermediary or mediator can help, who can objectively assess the position of each of the parties and help to find a compromise. After that, you can transfer the rest of the work with the documents to professionals - TEAM lawyers, who will be able to prepare all the papers necessary for the approval of the settlement in court using their best practice.