Settlement Release Letter


The settlement release letter is more likely an agreement between two parties. All the alleged details, any filed charges, etc. must be included in the body of the letter. Further, the terms on which the parties have agreed to the dismissal of pending litigation must be mentioned. The release of future claims, settlement amount, no modification in any agreement unless done in writing, further actions which the parties need to carry out and venue, date of agreement should be mentioned in the letter. There should be a place for getting the signature of the representatives of the two parties, witnesses, and the authorized officer.

Since it is an official type letter professional and formal tone must be maintained. The terms and conditions on which the letter is signed must be clear. The following is a sample of settlement release letter, go through it and get an idea of writing a letter as per your need.

Sample Letter

This is a sample of Settlement release letter between two companies who used to trade mutually.


Settlement House,




Mr. Akeshiya Selwaroz,

Houston Apartment,

Flat No.-59,

Bridge Street, Boston.

Subject: does- Regarding settlement and agreement.

Dear Mr. Selwaroz,

Be it known for good consideration and in further consideration of the settlement release letter here in entered into that, Mr. Akeshiya Selwaroz and Mr. Jordan Beckhman do at this moment completely, mutually and reciprocally release and free each other from all claims, contracts, demands, agreements, proceedings and liabilities of the other.

Both the parties are now free to trade alone, if there is a breach of contract, the concerned company will be liable for this.

The parties agree and covenant as follows:-

  • Both the part does at this moment release, acquit and forever discharge from all the agreements and deeds.
  • The settlement evidence by this release is a compromise of all claims.
  • This settlement contains the entire agreement and is understandood between the parties.
  • Both the parties have carefully read the preceding settlement as well as that they understand and agree to each other on the terms and condition.


First Part_________.

Second Party ________.

Send the undersigned letter as soon as possible.


John Carter

Settlement House,


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