Is the settlement agreement a legally binding document?

A settlement agreement is a legally binding contract between the two parties. When signed it is enforceable in law.

At the end of the mediation, if the parties reach an agreement, they will sign a Settlement Agreement. This agreement is a legally binding document and is a new contract between the parties.

The settlement agreement will almost always be in full and final settlement of the dispute and will set out a series of terms that the parties have reached for this settlement (for example, one party may agree to pay the other party a sum of money by a certain date). If a party does not perform an agreed action in the settlement agreement, the other party can go to court to require it to be performed.

Because of the fact that it is a legal contract, it is important that parties are comfortable with the settlement agreement before they sign it and understand their obligations. The mediator will not give legal advice to the parties or tell them to sign the settlement agreement.