Settlement date

Confirm the operative date of settlement. If possible, it is generally cleaner for there to be a single ‘settlement date' rather than separate signature, commencement and effective dates.

Parties

Confirm each party's status in respect of the dispute or proceedings as a contracting party and whether any third parties (such as group affiliates) should be a party. Abbreviate parties' names where this is helpful to distinguish between them for easier reading of the settlement agreement.

Background

Include details including a description of any court claims or the background to the dispute. Include a description of the IP rights including references to registered numbers of IP rights or other evidence of the rights, where possible.

Authority

Consider asking to see a board resolution or other form of authority for the other party's signatory and check their articles of association to see who can sign agreements binding the company party.

Specific terms of settlement

Consider which disputes or claims are being settled and define ‘dispute' and / or ‘claims' accordingly.