Agreement in full settlement of a disputed debt

What's an agreement in full settlement of a disputed debt and when do you need it?

Use this document if you have a dispute over a debt owed to you and you and your debtor have managed to agree the terms of a settlement to avoid the matter going before a court. This agreement will be legally binding on you both.

A disputed debt would mean where there is a genuine dispute, not just something devised to delay paying. Typically, a disputed debt will relate to problems with the supply of goods/services, late delivery of them, or defects in them, where a supplier argues that money is owed and the buyer argues that either in whole or part, the money is not owed, because what was delivered did not meet the description of what was offered at the point of purchase.

If you want to maintain your contractual relationship with the other party and you both intend for there to be an ongoing supply relationship, check the terms of this document carefully – you wouldn't want to accidentally wrap up other matters into an all-encompassing full and final settlement agreement. Use this document if you have a dispute over a debt owed to you and you and your debtor have managed to agree the terms of a settlement to avoid the matter going before a court. This agreement will be legally binding on you both.