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Settlement agreement template (commercial and civil disputes) (Word & PDF)
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For parties ending a commercial or civil dispute, and the counsel recording the deal. It covers the sum, the payment schedule and the release. It does not certify the settlement, and an end-of-service settlement is outside it.
Sources: 6 official sourcesNot legal advice
What this template includes
File the settlement on the official platform
A free bilingual settlement and release for a commercial or civil dispute between two parties in the GCC. It records the sum, a payment schedule, the release and confidentiality. For the definitions, see settlement and enforcement of judgments. For an acknowledgement of the debt before the settlement, see the debt acknowledgement. Do not use it for end-of-service benefits: use the final settlement and release and end-of-service gratuity.
Settlement and release in this template
Here the settlement is the parties’ agreement to end a described dispute. The release is the clause that gives up claims arising from that dispute once payment is complete. Certification, in Saudi Arabia, is what the Taradhi service describes: certification by the MoJ Conciliation Center.[1] This template does not itself create that certification.
- Describe the dispute in neutral words, name the sum, and fill in the payment schedule.
- Keep the release inside this dispute. Leave out end-of-service benefits, family matters and criminal cases.
- In Saudi Arabia, file through Najiz and then Taradhi if you want the Conciliation Center to certify the agreement.[1]
- This page states no list of disputes that must go to conciliation before a claim, no fee, and no article numbers from the UAE Civil Transactions Law.
The template
Settlement and release
A settlement of a commercial or civil dispute between two parties in the GCC: the sum, a payment schedule, a release and confidentiality. It does not settle end-of-service benefits, family matters or criminal cases. Replace every [placeholder] and delete the option that doesn’t apply.
This agreement is made on [date] between [Party A: name, ID/CR, address] and [Party B: name, ID/CR, address] (each a “Party”).
Drafting note
Use the name on the ID or in the commercial register. If a party signs through an agent, identify the power of attorney.
A dispute arose about [neutral description: the contract, the sum, the date]. Neither party admits the other’s case by signing this agreement.
Drafting note
Describe the facts without words of blame. An admission, if you want one, is its own clause.
[Payer] pays [Payee] [amount] on the schedule in Annex 1, in return for ending the dispute described in clause 2.
The Payee releases the Payer from this sum only to the extent it is actually paid. The balance remains due until payment is complete.
Drafting note
This page states no statutory rule on instalments. If the parties agree instalments, write them in the schedule, then see what Taradhi or the court will accept when the request is filed.
Option: if an instalment is more than [●] days late after written notice, the balance becomes due at once. Instalments already paid still end the part of the dispute they covered.
Delete this option if the sum is paid in one amount.
Drafting note
Don’t leave the notice period blank if you keep the option.
Each party releases the other from claims arising out of the dispute described in clause 2 only, and only once payment is complete. The release does not cover: [excluded claims], or end-of-service gratuity or any employment settlement. Use the employment contract template for those.
Drafting note
Keep the release inside the dispute you have described. A release with no subject needs a lawyer before anyone signs.
Signing this agreement, and any payment under it, is not an admission of liability by either party.
The parties keep the terms confidential, except for disclosure to a lawyer or an accountant, where the law requires it, or to perform or to certify this agreement.
Within [●] days of signature, the parties do the following, each for its own part:
- (a) Tell the court or other forum of any pending case number [●], and ask to withdraw it or to record the settlement if that forum accepts the request.
- (b) In Saudi Arabia: file a conciliation request through Najiz and then Taradhi if the parties want the Conciliation Center to certify it.[1]
- (c) Keep a signed copy for each party.
Drafting note
The service card says the Conciliation Center certifies the settlement digitally.[1] This page does not say that the signed contract alone is an enforcement instrument, and it does not list disputes that must go to conciliation first.
This agreement is governed by the laws of [country]. A dispute about it goes to [the courts of ● / arbitration under ●].
Party A: name [●] · capacity [●] · signature [●] · date [●]
Party B: name [●] · capacity [●] · signature [●] · date [●]
Drafting note
Name the forum. For arbitration see arbitration, and for enforcement see enforcement of judgments. This template cites no article numbers from Federal Decree-Law No. 25 of 2025.[5]
Saudi Arabia notes
What the conciliation service card states. The body of the Civil Transactions Law was not readable from this network.[1][4]
| Item | What the card states |
|---|---|
| Filing | The request starts on Najiz, in the conciliation package, then the electronic conciliation service, then Taradhi.[1] |
| Certification | The card describes an amicable settlement with official certification by the MoJ Conciliation Center, digitally, without a visit to a justice facility.[1] |
| Documents | The card says no documents are required to file the request.[1] |
| Civil law | The Civil Transactions Law is published on the Ministry of Justice portal. This template cites no article numbers.[4] |
UAE notes
| Item | What to do |
|---|---|
| Civil law | Federal Decree-Law No. 25 of 2025 on civil transactions, in force on 1 June 2026. No article numbers.[5] |
| Publication | Federal legislation is published on the UAE Legislation platform. The government portal points to where to find it.[6] |
| Conciliation centre | This pass did not read a named federal or local conciliation centre. Check the competent court’s service before you name one in the contract. |
Annex 1 – Payment schedule
One instalment or several. The amounts should add up to the sum in clause 3.
| Instalment | Due date | Amount | Method |
|---|---|---|---|
| 1 | [date] | [amount] | [transfer / cheque / other] |
| 2 | [date] | [amount] | [●] |
| 3 | [date] | [amount] | [●] |