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Full and final settlement agreement to end a dispute (England and Wales)
England and Wales · in English
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10 questions · about 4 min
Made for use in England and Wales
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For two people or businesses who have agreed to end a dispute — over money, goods, work done, damage or a deposit — by one paying the other an agreed sum. The agreement records the payment and when it is due, that once paid it settles all claims about the dispute, that neither side admits liability, and that each bears its own costs. It is not for a dispute with an employer: an employee's claims are settled only by an agreement made after independent advice, or through Acas. Both sign it; each keeps a copy.
- Made for use in England and Wales
- Last updated October 28, 2026
- Document in English
Where a UK document reproduces the words of legislation or of a government publication — UK, Scottish or Northern Irish — it contains public sector information licensed under the Open Government Licence v3.0.
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When to use this document
- You and a neighbour in England or Wales have agreed a sum to end an argument about damage.
- You want to be sure the other side cannot raise the same dispute again once paid.
- A dispute over a deposit or work done is ending with an agreed payment.
- You want a full and final settlement in writing between two people or firms.
What you fill in
The details the document asks for.
- Date
- First party
- First party's address
- Town or city
- Second party
- Second party's address
- What the dispute is about
- Which party pays the other
- Amount
- Payment deadline
Common questions
- What does full and final settlement mean in England and Wales?
- Once the agreed sum is paid, neither side can bring a claim about the same dispute again, even if it later turns out the claim was worth more. That is why the dispute is described in the agreement: claims outside that description are not settled. Each party may wish to take advice before signing.
- Can we use a settlement agreement if a court claim has already started?
- Yes, between yourselves, and clause 6 commits you both to tell the court. The court will usually need a consent order signed by both sides or a notice of discontinuance from the claimant to close the case; the forms and guidance are free on GOV.UK. A settlement reached at small claims mediation is recorded by the mediator.
- Can a settlement agreement like this end a dispute with my employer?
- No. An employee can give up most employment claims only through a settlement agreement that meets section 203 of the Employment Rights Act 1996, including advice from an independent adviser, or through Acas. Use this agreement for disputes about money, goods, services, property damage or deposits between other parties.
How you can sign this document
- Print it and sign by hand. The signature lines in the document are left blank on purpose — sign on them in ink.
- Sign it yourself with a qualified electronic signature. If you already hold a QES — Evrotrust, B-Trust, StampIT, ZealiD or any qualified provider on the EU Trusted List, on a card, a USB token, in a mobile app or in the cloud — our signing guide explains step by step how to sign this exact file without invalidating it. Step-by-step help, and a way to check it worked
DocMuse sells documents, not legal advice. Acceptance always depends on the recipient's rules and your local law.
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