Jurisdiction(s):
United Kingdom

Release clauses in non-employment settlement agreements: negotiating scope (known, unknown and future claims), carve-outs, associated parties, consideration and common pitfalls

Published by a LexisNexis Dispute Resolution expert

Practice notes

This Practice Note serves as a negotiating aid for dispute resolution solicitors engaged in agreeing and drafting settlement agreements after a dispute has been resolved by negotiation, regardless of whether court proceedings were issued beforehand. Its focus is the release clause which, alongside the payment clause, typically forms one of the agreement’s two core components. It outlines the likely stances parties will take when settling the terms of the release, and proposes possible middle-ground solutions they might accept. The Note offers a high-level overview of the topics, helping readers assess what will be required in a given matter. It also signposts further Practice Notes and Precedents for those needing additional reference material. These should be consulted where further guidance is required. It is not designed for use in negotiating settlements of employment contract disputes, where distinct considerations may apply and other issues may arise.

Aims of the parties

Once a settlement has been reached in principle—or sometimes as discussions progress—the breadth of the release clause will unavoidably become a drafting issue within the settlement agreement...

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Web page updated on 21/05/2026

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