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Settlement Agreement โ€” Plain-English Summary

Resolve a dispute with payment and mutual release.

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SimpleFullPlain-English Summary

Plain-English Summary: explains each section of the Full version. Sign it alongside the Full version, or use it on its own as a summary sheet.

This template is not legal advice; consult a licensed attorney in your state. State law varies. Check your state's requirements (for example signature, witness or notarization rules) before relying on this document.
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1. Parties2. Details

Parties

Signing order: Party A โ†’ Party B. Each signer is invited after the previous one signs.

1. Party A
2. Party B

Signature, date and name fields are added for every signer automatically.

Details

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Signature, initials (every page) and date fields are placed for each party. You can review and adjust them before sending.

Live preview

What the sections mean (plain English)
Dispute
How disagreements get handled before anyone goes to court.
Payment
How much is paid, when, and what happens if it's late.
Mutual Release
Rights or claims being given up.
Confidentiality
What must be kept secret and for how long.
Entire Agreement; governing law
Which state's law applies and where any lawsuit must be filed.
SEVERABILITY
If a court strikes one clause, the rest still counts.
NOTICES
How the parties must officially contact each other.
COUNTERPARTS; ELECTRONIC SIGNATURES
E-signatures are valid and each party can sign separately.
Optional clauses
Extra terms you can switch on or off in step 3. Leave them off if unsure.

How to use this Settlement Agreement template

  1. Answer the guided questions. Your name and company fill in automatically from your profile.
  2. Pick the governing state and complete the [STATE-SPECIFIC] blanks. Switch optional clauses on or off.
  3. Check the live preview, then create the document. Signature, initial and date fields are placed for each party.
  4. Review the fields and send. Each party signs in order, and everyone gets the signed PDF.

Frequently asked questions

Is this Settlement Agreement template free?

Yes. You can fill it in, download it and send it for electronic signature with a free E-Sign Auto account.

Is an electronically signed Settlement Agreement legally binding?

In the U.S., the federal ESIGN Act and state UETA laws generally give e-signatures the same effect as handwritten ones. Check your state's rules.

Does this template work in my state?

It is a generic, state-neutral starting point. Pick your governing state and complete every blank marked [STATE-SPECIFIC]. This template is not legal advice; consult a licensed attorney in your state.

Who signs, and in what order?

Party A, then Party B. Each signer gets a secure link in that order, with signature, initial and date fields already placed.