The letter of demand has arrived and you have decided settlement is the sensible path. Maybe the claim is partially valid, maybe litigation is too risky, maybe you just want closure. Settlement is often the right call — but the settlement is only as strong as the document that records it. A handshake or an email exchange is not enough.
Why a Deed of Settlement matters
A Deed of Settlement is a binding written agreement that resolves the dispute and prevents either party reopening it. Under Australian contract law and state Property Law Acts, a deed creates obligations enforceable by court order without needing to prove fresh consideration. Crucially, a properly-drafted deed contains a release clause and a “bar to further proceedings” — meaning the other side cannot come back later with the same claim under a different label.
Common pitfalls when settling without a deed
- Paying without a release. You pay, they cash the cheque, and three months later they sue for “additional losses”.
- Email-only settlements. Often unenforceable, easily disputed, and missing critical clauses.
- Verbal agreements. Effectively unenforceable for anything beyond very small sums.
- Settling only one cause of action. Leaves related claims (breach of contract, ACL section 18, restitution) live.
- No confidentiality or non-disparagement. The other side can publicly discuss the dispute after the fact.
What a Deed of Settlement does
A proper Deed of Settlement records: the dispute being resolved, the agreed payment (and timing), a mutual release of all related claims known and unknown, a bar to further proceedings, confidentiality obligations, non-disparagement, an entire-agreement clause, and a no-admissions clause (so the deed cannot be tendered as evidence of liability if anything similar arises elsewhere). It is signed under seal so it binds without further consideration.
How to position the negotiation
Settlement offers should be made without prejudice except as to costs — the standard formulation that allows the offer to be referenced in costs arguments later, but not as evidence of liability. Anchor low or high depending on which side you are on, leave room to move, and never make the first offer your final position unless you genuinely mean it.
What Claim Done delivers
For a flat $79, Claim Done drafts a Deed of Settlement tailored to your dispute — with the right release scope, payment terms, confidentiality, and no-admission clauses for Australian conditions. About ten minutes in the wizard. A solicitor would charge $600–$1,500 for the same document.
What happens after
Once both parties sign the deed and any agreed payment is made, the matter is closed and enforceable as a contract. If the other side breaches the deed (for example, by suing again or breaching confidentiality), you can sue on the deed itself — usually a very straightforward claim because the obligations are written down clearly.