The Out of Court Settlement is a Contract
The law does not require a particular form to be respected as a necessary condition for the formation of a settlement agreement. Therefore, the out of court settlement is a simple contract between parties. Such a contract can be formed by the exchange of the will of the parties, whatever the medium (or format) of the contract. The legal value of such document is neither increased nor diminished solely because it is supported by a technology medium.
A contract is formed by the sole exchange of consents between persons having capacity to contract, unless, in addition, the law requires a particular form to be respected as a necessary condition of its formation, or unless the parties subject the formation of the contract to a solemn form.
The law does not require a particular form to be respected as necessary condition for the exchange of will of the parties. Therefore, whether it is a wet signature on a document, an email exchange, a fax exchange, an exchange of verbal consents, even filing in a form on the Internet, a contract will exist as long as there has been a clear exchange of consents between the parties.
BidSettle’s Out of Court Settlement
As a contract, the Out of Court Settlement that is generated by BidSettle constitutes a legal obligation. It is proof, or evidence, that the parties reached a monetary agreement in order to settle their dispute.
The unique characteristics of BidSettle’s Out of Court Settlement:
- It constitutes legal evidence, or proof;
- The debtor (the person owing money) has 30 days to pay the creditor the full amount indicated in the agreement;
- If the 30 day deadline is up, the creditor has two options:
- ignore the Out of Court Settlement and ask for the full amount (or any other amount);
- rely on the courts to obligate the opposing party to pay the amount indicated in the Out of Court Settlement.
- The Out of Court Settlement is confidential: unless required by law, the parties must undertake not to divulge it to any person, except to counsel and/or financial advisors. In the case of a grievance, the information may be divulged to the employee’s immediate family and to the employer, as required, to execute the terms of the Settlement.
- If you hired a lawyer, provide him/her with a copy of the Out of Court Settlement as soon as possible.