Settlement Agreement (Transaction) — Quebec
Province de Québec — Code civil du Québec, articles 2631 à 2637
La présente transaction (ci-après la « Transaction ») est conclue le [Date de la transaction] à [Lieu de signature], conformément aux articles 2631 à 2637 du Code civil du Québec (RLRQ, c. CCQ-1991).
ENTRE LES SOUSSIGNÉS :
[Première partie — Nom], domicilié(e) au [Première partie — Adresse], courriel : [Première partie — Courriel] (ci-après la « Première Partie ») ;
ET
[Deuxième partie — Nom], domicilié(e) au [Deuxième partie — Adresse], courriel : [Deuxième partie — Courriel] (ci-après la « Deuxième Partie »).
La Première Partie et la Deuxième Partie sont ci-après collectivement désignées les « Parties » et individuellement une « Partie ».
PRÉAMBULE
ATTENDU qu'un différend est survenu entre les Parties concernant : [Description du différend] (dossier nº [Numéro de dossier]) (ci-après le « Différend ») ;
ATTENDU que les Parties désirent régler ce Différend à l'amiable, en faisant des concessions mutuelles, conformément à l'article 2631 du Code civil du Québec, qui définit la transaction comme le contrat par lequel les parties terminent un litige déjà né ou préviennent un litige à naître en se faisant des concessions mutuelles ;
ATTENDU que les Parties reconnaissent que la présente Transaction constitue un règlement final, global et définitif du Différend, sous réserve des modalités ci-après énoncées ;
EN CONSÉQUENCE, les Parties conviennent de ce qui suit :
**OBJET DE LA TRANSACTION.** La présente Transaction a pour objet de mettre fin définitivement au Différend entre les Parties, soit [Description du différend]. Conformément à l'article 2631 du Code civil du Québec, chaque Partie fait les concessions ci-après décrites en contrepartie des concessions de l'autre Partie, de sorte que la Transaction constitue un titre exécutoire au même titre qu'un jugement, conformément à l'article 2633 du Code civil du Québec.
**CONCESSIONS MUTUELLES.** En contrepartie des concessions réciproques ci-après prévues, dont les Parties reconnaissent mutuellement le caractère adéquat et suffisant, les Parties conviennent de ce qui suit :
2.1 **Concession de la Première Partie :** [Concession première partie]
2.2 **Concession de la Deuxième Partie :** [Concession deuxième partie]
**QUITTANCE ET RENONCIATION MUTUELLES.** Sous réserve de l'exécution intégrale des obligations prévues aux présentes, les Parties se donnent mutuellement quittance pleine et finale de [Portée de la quittance]. Cette quittance vaut libération de toute action, demande, réclamation, prétention ou droit de quelque nature que ce soit, connu ou inconnu à la date des présentes, à l'encontre de l'autre Partie et de ses représentants, successeurs, héritiers et ayants droit respectifs, relativement au Différend. Les Parties reconnaissent que la présente quittance est volontaire, éclairée et librement consentie, conformément à l'obligation de bonne foi prévue à l'article 1375 du Code civil du Québec.
**BONNE FOI.** Conformément à l'article 1375 du Code civil du Québec, les Parties se sont comportées de bonne foi lors de la négociation et de la conclusion de la présente Transaction, et s'engagent à en exécuter les obligations de bonne foi. Toute Partie qui manquerait à cette obligation est tenue de réparer le préjudice causé à l'autre Partie. La Transaction a été conclue librement, sans contrainte, menace, dol ou lésion, et chaque Partie a eu l'occasion de consulter un conseiller juridique de son choix avant de signer les présentes.
**CARACTÈRE DÉFINITIF ET FORCE EXÉCUTOIRE.** Conformément à l'article 2633 du Code civil du Québec, la présente Transaction a, entre les Parties, l'autorité de la chose jugée. Elle met fin irrévocablement au Différend et aux droits y afférents, et ne peut être remise en cause pour cause d'erreur de droit ou de lésion, conformément à l'article 2634 du Code civil du Québec, sauf en cas de dol de la part de l'une des Parties. La Transaction est susceptible d'exécution forcée au même titre qu'un jugement.
**LOI APPLICABLE ET DIVISIBILITÉ.** La présente Transaction est régie et interprétée conformément aux lois de la province de Québec et aux lois fédérales du Canada qui s'y appliquent, notamment le Code civil du Québec (RLRQ, c. CCQ-1991) et le Code de procédure civile (RLRQ, c. C-25.01). En cas de nullité ou d'inexigibilité d'une disposition des présentes, les autres dispositions demeureront en vigueur dans la mesure permise par la loi.
**INTÉGRALITÉ DE L'ENTENTE ET MODIFICATIONS.** La présente Transaction constitue l'intégralité de l'entente entre les Parties relativement au règlement du Différend et remplace toute négociation, représentation, lettre d'entente et accord antérieur, verbal ou écrit. Les présentes ne peuvent être modifiées que par un écrit dûment signé par les deux Parties.
EN FOI DE QUOI, les Parties ont signé la présente Transaction à la date et au lieu indiqués ci-dessus.
Première Partie :
Nom : [Première partie — Nom]
Deuxième Partie :
Nom : [Deuxième partie — Nom]
Première Partie
________________
Signature
Date: ________________
Deuxième Partie
________________
Signature
Date: ________________
What Is a Settlement Agreement (Transaction) — Quebec?
A Quebec Settlement Agreement (Transaction) is a legal contract governed by articles 2631 to 2637 of the Code civil du Québec (CCQ) that allows two or more parties to resolve an existing or anticipated dispute by making mutual concessions. The term 'transaction' in Quebec civil law has a precise technical meaning: it is not a synonym for any business dealing, but specifically refers to the mechanism by which parties extinguish a legal claim through reciprocal concessions.
Under article 2631 CCQ, a transaction is defined as the contract by which the parties terminate a dispute that has already arisen or prevent a dispute from arising, by making mutual concessions to each other. This definition contains several essential elements: the existence of a dispute (or an anticipated dispute), the parties' intention to resolve it definitively, and genuine mutual concessions from each party. If only one party makes concessions, the document is not a valid transaction under Quebec law.
One of the most powerful features of a Quebec transaction is its legal force. Under article 2633 CCQ, a transaction has, between the parties, the authority of res judicata (la chose jugée). This means that a properly drafted and executed transaction is equivalent to a final court judgment — it definitively ends the dispute between the parties and cannot be re-litigated. This is significantly stronger than a simple settlement agreement in common law provinces, which is merely a contract enforceable by bringing a new action for breach.
The transaction is deeply rooted in the French civil law tradition and reflects Quebec's distinct legal heritage under the Code civil du Québec. Unlike common law settlements where 'consideration' is the organizing concept, Quebec transactions are built around the concept of mutual concessions (concessions mutuelles), which is broader and more flexible. The principle of good faith (bonne foi) under article 1375 CCQ also pervades the entire transaction process, from negotiation through execution.
A Quebec transaction can be concluded en sous-seing privé (as a private document) or as a notarial act. For most personal injury, property damage, or contractual disputes, a private written transaction is sufficient. For transactions involving real property rights that must be published in the land register, a notarial act is required. Under Quebec law, Article 1385 of the Civil Code of Québec (CCQ) and Section 4 of the Business Corporations Act (CQLR c S-31.1) govern the core requirements for this type of document.
The legal framework governing the Settlement Agreement (Transaction) — Quebec in Quebec draws on several key statutes and regulatory bodies. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations. Parties executing a Settlement Agreement (Transaction) — Quebec in Quebec should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Civil Code of Québec (CCQ), art. 2631-2637 sets the foundational requirements.
Article 1375 of the Civil Code of Quebec imposes a duty of good faith in contractual performance. Article 1379 of the Civil Code of Quebec defines contracts of adhesion. Article 1432 of the Civil Code of Quebec governs interpretation against the drafter. Article 1457 of the Civil Code of Quebec establishes extra-contractual liability. Article 1458 of the Civil Code of Quebec addresses contractual liability. Section 6 of the Act Respecting Labour Standards of Quebec mandates minimum employment conditions. Section 10 of the Charter of Human Rights and Freedoms of Quebec prohibits discrimination. The Superior Court of Quebec and the Court of Quebec have jurisdiction over civil disputes arising from agreements governed by Quebec law.
When Do You Need a Settlement Agreement (Transaction) — Quebec?
When two individuals or companies in Quebec have a personal injury claim — such as after a car accident, slip and fall, or dog bite — and wish to resolve the matter without litigation. A transaction provides a final and binding resolution with the force of res judicata, preventing either party from re-opening the dispute.
When parties are engaged in a contractual dispute, such as a construction defect claim, unpaid invoice, breach of service contract, or disagreement over goods delivered, and wish to negotiate a settlement to avoid the cost and delay of a Superior Court or Court of Quebec proceeding.
When a landlord and tenant in Quebec have a dispute about property damage, unpaid rent, lease obligations, or security deposit return, and wish to resolve the matter through a written settlement before or after proceedings at the Tribunal administratif du logement (TAL).
When an employer and employee in Quebec have a dispute arising from termination, wrongful dismissal, harassment, or other employment matter, and wish to reach a final settlement (often in lieu of pursuing remedies under the Act respecting labour standards or the Charter of the French Language).
When neighbours have a dispute over a boundary fence, easement, noise, or other property matter and wish to avoid court proceedings.
When business partners, shareholders, or co-owners have a dispute over the management, finances, or dissolution of a business and wish to reach a global settlement that addresses multiple claims simultaneously.
Without a written transaction compliant with articles 2631–2637 CCQ, informal settlements may not have the force of res judicata, leaving the parties vulnerable to the dispute being re-opened. A properly drafted transaction provides certainty, finality, and legal enforceability that an oral or informal agreement cannot provide. Under Quebec law, Article 1385 of the Civil Code of Québec (CCQ) and Section 4 of the Business Corporations Act (CQLR c S-31.1) govern the core requirements for this type of document.
Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations.
What to Include in Your Settlement Agreement (Transaction) — Quebec
Identification of the Parties — Full legal names, addresses, and contact information of all parties to the transaction. The Code civil du Québec requires the parties to be clearly identified to establish who is bound by the res judicata effect of the transaction (art. 2633 CCQ).
Description of the Dispute — A precise description of the existing or anticipated dispute being settled. This is required to define the scope of the res judicata effect: only the matters described in the transaction are definitively resolved; other claims not mentioned remain available.
Mutual Concessions — Under article 2631 CCQ, mutual concessions are the essential defining element of a transaction. Each party must give up something of value: a monetary payment, withdrawal of legal proceedings, waiver of a claim, acceptance of a compromise, or any other genuine concession. The concessions need not be economically equivalent but must be real.
Monetary Payment Terms — If the settlement includes a payment, specify the amount in Canadian dollars, the party making the payment, the payment method (certified cheque, wire transfer, Interac e-Transfer), and the deadline. Under article 2633 CCQ, failure to pay may be enforced as a judgment.
Full and Final Release (Quittance) — Under article 2632 CCQ, the transaction extinguishes the rights arising from the matter being settled. The scope of the release should be clearly defined: known and unknown claims, specific claims only, or all claims arising from the dispute.
Discontinuation of Proceedings — If court or administrative proceedings are pending between the parties, the transaction should specify which proceedings will be withdrawn, discontinued, or dismissed, and within what time frame.
Confidentiality Clause — Many parties wish to keep the settlement terms private. A confidentiality clause is valid under the CCQ's general freedom of contract (art. 1373 CCQ) and enforceable through damages and potentially punitive damages under article 1621 CCQ.
Good Faith and No Duress — Article 1375 CCQ requires that the transaction be negotiated and concluded in good faith. The document should confirm that both parties sign voluntarily, without constraint, and with the opportunity to seek independent legal advice.
Authority of Res Judicata — A statement confirming the force of the transaction under article 2633 CCQ provides clarity and reminds both parties of the binding and final nature of the settlement.
Governing Law and Divisibility — The transaction should specify that it is governed by the laws of the Province of Quebec and that severance applies if any provision is found invalid. Under Quebec law, Article 1385 of the Civil Code of Québec (CCQ) and Section 4 of the Business Corporations Act (CQLR c S-31.1) govern the core requirements for this type of document. Under Quebec law, Section 79.1 of the Act Respecting Labour Standards (CQLR c N-1.1) and Article 35 of the Code of Civil Procedure (CQLR c C-25.01) govern the core requirements for this type of document.
Additional compliance elements for a Settlement Agreement (Transaction) — Quebec used in Quebec include: Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. The Consumer Protection Act (CQLR c P-40.1) and the Office de la protection du consommateur (OPC) protect consumer rights. The Act Respecting the Protection of Personal Information in the Private Sector governs data privacy through the Commission d'acces a l'information (CAI). Revenu Quebec administers provincial tax obligations. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
Article 1590 of the Civil Code of Quebec provides remedies including specific performance and damages. Article 1601 of the Civil Code of Quebec establishes compensatory damages principles. Article 1604 of the Civil Code of Quebec governs the right to resolution. Article 1613 of the Civil Code of Quebec limits damages to foreseeable losses. Article 1623 of the Civil Code of Quebec allows liquidated damages clauses. Article 2803 of the Civil Code of Quebec places the burden of proof on the claiming party. Section 41 of the Consumer Protection Act of Quebec regulates warranty obligations. Section 53 of the Consumer Protection Act of Quebec establishes merchant liability. The Autorite des marches financiers du Quebec supervises financial transactions. The Office de la protection du consommateur du Quebec enforces consumer rights. Forms-legal.com provides this Quebec-compliant template as a starting point.
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Forms Legal. (2026). Settlement Agreement (Transaction) — Quebec (Quebec) [Legal document template]. Forms Legal. https://forms-legal.com/quebec/financial/agreements/settlement-agreement-quebec
"Settlement Agreement (Transaction) — Quebec (Quebec)." Forms Legal, 2026, https://forms-legal.com/quebec/financial/agreements/settlement-agreement-quebec.
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author = {{Forms Legal}},
title = {Settlement Agreement (Transaction) — Quebec (Quebec)},
year = {2026},
howpublished = {\url{https://forms-legal.com/quebec/financial/agreements/settlement-agreement-quebec}},
note = {Free legal document template. Based on Civil Code of Québec (CCQ), art. 2631-2637}
}Frequently Asked Questions
Under article 2631 of the Code civil du Québec, a transaction (settlement agreement) is a contract by which the parties put an end to a dispute that has already arisen or prevent a dispute from arising, by making mutual concessions. It is a fundamental concept of Quebec civil law and differs from common law settlements in that it requires genuinely reciprocal concessions from each party. A transaction has the authority of res judicata between the parties (art. 2633 CCQ) and is enforceable in the same manner as a court judgment. Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
Article 2634 of the Code civil du Québec provides that a transaction cannot be contested on the ground of an error of law or lesion (economic imbalance). However, under article 2634 CCQ, a transaction may be annulled for deceit (dol) practiced by one of the parties. Additionally, if the transaction was concluded under duress, error of fact, or other vitiating factors recognized by the CCQ, the general rules on contracts (arts. 1399–1408 CCQ) may apply. Once perfected and performed, a transaction is very difficult to set aside. Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
Yes. Under article 2631 CCQ, mutual concessions are an essential element of a valid transaction. Each party must give something up or accept something in return. A document where only one party makes concessions is not a transaction but an accord (acknowledgment) or a donation (if one party receives nothing). The concessions do not need to be of equal economic value, but they must be genuine. In practice, a monetary payment combined with a release of claims by the other party satisfies the mutuality requirement. Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
A Quebec transaction (arts. 2631–2637 CCQ) has the force of res judicata between the parties by operation of law, meaning it is equivalent to a final court judgment. In common law provinces, a settlement agreement is a contract that must be enforced by bringing a new action for breach if one party fails to perform. In Quebec, a properly drafted transaction can be directly enforced through court enforcement mechanisms without starting new proceedings. Additionally, the Quebec transaction requires written form when it involves immovable property (art. 2631 CCQ). Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
A private transaction (sous seing privé) between the parties does not generally require notarization to be valid and binding. However, if the settlement involves immovable property (real estate), a notarial act may be required to publish rights in the land register. A notarized transaction (acte notarié) also carries greater enforceability and can be enforced through the clerk of the court without further judicial proceedings. For significant amounts or complex matters, notarization by a Quebec notary is strongly recommended. Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
Yes. Under the Code civil du Québec, parties have broad freedom to contract (art. 1373 CCQ), and a confidentiality clause in a settlement agreement is generally enforceable. Breach of a confidentiality clause can give rise to damages under article 1457 CCQ, and in cases of bad faith or intentional breach, punitive damages may be available under article 1621 CCQ. However, confidentiality clauses cannot prevent disclosure required by law or court order, and they cannot be used to conceal illegal activity. Under Quebec law, Civil Code of Québec (CCQ), art. 2631-2637, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Quebec law, the Civil Code of Quebec (CCQ) governs contractual obligations and property rights. The Act Respecting Labour Standards (CQLR c N-1.1) and the Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST) regulate employment. Forms-legal.com provides this template as a starting point for Quebec-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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