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This Practice Note considers the issues that can arise in determining when a binding settlement of a dispute has been concluded, if it was concluded at all.

For guidance on enforcing settlement agreements, see Practice Notes: Enforcing settlement agreements concluded after proceedings have commenced and Enforcing settlement agreements concluded pre-action.

When a negotiation of disputed matters is followed by the acceptance of an offer supported by consideration with the intention of creating a legal relationship, a settlement agreement is made.

In order to be contractually binding, in the settlement arrangement there must be identifiable:

1. •

   acceptance of an offer—this means the final and unqualified assent to an offer

2. •

   the assent corresponding with the terms of the offer

3. •

   it is essential that the acceptance is communicated to the offeror to be accepted

Be aware of the possibility of accepting an offer even though the intention is to continue negotiations. For guidance on avoiding this, see Practice Notes:

1. •

   Settling disputes—w³ó´Ç, confidentiality and subject to contract

2. •

   Settling disputes—how to document a settlement

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