Settlement Agreement Letter


A settlement agreement letter is one wherein while two parties have a deal and they finally agree on settling on one thing; then one party informs the other regarding the agreement of settlement through this letter. Often while making a deal, the parties involved have a difference of opinion. It is wise to agree on one common settlement for smooth transaction of business. The agreement can be on anything like product quality, quantity, etc.

A settlement agreement letter is a formal letter that is written by one of the two parties involved in a sort of deal or contract, to inform the other party regarding the settlement in the agreement. It has to be written professionally.  It should mention all the things relating to the settlement so that the other party doesn’t have any confusion regarding the same. Once through the letter, run a grammar check to ensure the grammatical correctness of the letter.

Sample Letter

The following is the sample of settlement agreement letter.


Saurabh Agrawal,

Purchase Head,

S&A Steel Pvt. Ltd,




Ayush Jindal,

Sales Head,

A&J Steel Pvt. Ltd,


Subject: Agreement Settlement Letter.

Dear Ayush,

Warm greetings from our company. We hope you are doing well. I am writing you this letter about our agreement which we had discussed a week ago in our meeting. While we both had a difference of opinions regarding the various aspects of our agreement, I thought that it would be wise to settle on one thing for the proper transaction of business.

Yours is a very reputed company in Delhi, and it has shown tremendous progress in the past few years because of which we have been willing to do business with you. I have heard from other people too about your company that it manufactures great quality of steel and deploys it to companies across the globe. Our company too has been ranked at the 1st position last year, for it quality production.

I think it would be profitable for both our companies to do business or a joint venture, as I had mentioned earlier. It would not only help us in raising large capital from the market for our upcoming collaboration but also people would be able to trust it, and great employment opportunities too could be generated in the area where we want to set up our industry together. This way, we would succeed in doing our social responsibility job without much worry. Rest shall be the same as we had discussed. Do revert as soon as possible if you are up for this collaboration.

Thanking You

Yours Sincerely,

Saurabh Agrawal,

Purchase Head,

S&A Steel Pvt. Ltd,


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