Settlement Agreement (Singapore)
SETTLEMENT AGREEMENT AND RELEASE
Full and Final Settlement — Singapore
This Settlement Agreement is entered into on [Agreement Date] between:
Party 1: [Party 1 Name] (NRIC/UEN: [Party 1 UEN])
Party 2: [Party 2 Name] (NRIC/UEN: [Party 2 UEN])
(each a "Party" and together the "Parties")
BACKGROUND
A dispute has arisen between the Parties in relation to: [Dispute Description] (the "Dispute").
Court/tribunal proceedings reference: [Proceedings Reference].
The Parties now wish to settle the Dispute on a full and final basis on the terms set out in this Agreement.
1. SETTLEMENT PAYMENT
1.1 [Paying Party] shall pay the sum of SGD [Settlement Sum] (the "Settlement Sum") to the other Party by [Payment Date] by [Payment Method].
1.2 Payment of the Settlement Sum shall be in full and final settlement of the Dispute and all claims arising therefrom.
2. FULL AND FINAL RELEASE
2.1 In consideration of the Settlement Sum, each Party hereby fully and finally releases and discharges the other Party from all claims, demands, actions, proceedings, costs, damages, losses, and liabilities of every nature arising from or connected with the Dispute, whether known or unknown, present or future.
2.2 Each Party undertakes not to commence or continue any legal proceedings against the other Party in respect of any matter released under this Agreement.
2.3 If there are existing court or tribunal proceedings, the Parties shall within 7 days of payment of the Settlement Sum file the necessary documents to discontinue or withdraw such proceedings.
3. CONFIDENTIALITY
3.1 The Parties agree to keep the existence and terms of this Agreement strictly confidential and shall not disclose them to any third party without the prior written consent of the other Party, except as required by law or court order.
4. GENERAL
4.1 This Agreement constitutes the entire agreement between the Parties in relation to the Dispute and supersedes all prior negotiations and communications.
4.2 This Agreement is governed by the laws of Singapore. Any dispute arising from this Agreement shall be subject to the jurisdiction of the Singapore courts.
Party 1
________________
Signature
Party 2
________________
Signature
What Is a Settlement Agreement (Singapore)?
A Settlement Agreement in Singapore sets out the rights and obligations the parties agree to be bound by.
When Do You Need a Settlement Agreement (Singapore)?
A settlement agreement is needed whenever parties to a dispute wish to reach a negotiated resolution rather than proceed to trial or arbitration in the Singapore courts. The document is appropriate when: parties have reached agreement through direct negotiation or mediation at the Singapore Mediation Centre (SMC); the costs and uncertainty of litigation before the State Courts or High Court make settlement preferable; one party is willing to accept a lump sum or structured payment in lieu of pursuing a court judgment; or the parties wish to preserve a commercial relationship that contentious proceedings before SIAC would damage. Early settlement also avoids taxation of costs by the Registrar of the Supreme Court. Under Singapore law, the common-law requirements for a valid contract — offer, acceptance, consideration, and intention to create legal relations — and Section 169 of the Companies Act 1967 (Cap. 50) govern the core requirements for this type of document. Under Singapore law, Section 8 of the Employment Act 1968 (Cap. 91) and Section 4 of the Stamp Duties Act (Cap. 312) govern the core requirements for this type of document. Under Singapore law, Section 13 of the Personal Data Protection Act 2012 (PDPA) and Section 6 of the Conveyancing and Law of Property Act (Cap. 61) govern the core requirements for this type of document. Under Singapore law, Section 12 of the Sale of Goods Act (Cap. 393) and Section 3 of the Supply of Goods Act (Cap. 394) govern the core requirements for this type of document.
What to Include in Your Settlement Agreement (Singapore)
A Singapore Settlement Agreement should include: identification of the parties by full legal name and NRIC or UEN; a description of the dispute being settled, including any existing case number in the State Courts or High Court; the settlement sum in Singapore dollars and payment terms (whether lump sum or by instalments); a full and final release of all claims arising from the dispute, including claims the releasing party may not yet be aware of; mutual confidentiality obligations covering the terms and existence of the settlement (referencing the without-prejudice protection under section 23 of the Evidence Act, Cap. 97); any agreed non-disparagement obligations; representations that neither party has assigned the relevant claims to a third party; and governing law (Singapore). Where proceedings are pending, the agreement should specify that the claimant will file a Notice of Discontinuance with the State Courts or High Court within a stated number of days after receipt of the settlement sum. For employment disputes resolved through the Tripartite Alliance for Dispute Management (TADM), include a clause recording that the parties will seek approval of the agreement from an Employment Claims Tribunal Commissioner. The Stamp Duties Act (Cap. 312) may require stamping of the agreement if it relates to property. Tax implications should be considered with the Inland Revenue Authority of Singapore (IRAS) where the settlement sum relates to income or capital gains. The forms-legal.com Settlement Agreement (Singapore) template covers the mandatory elements under Companies Act 1967 (Cap. 50). Under Singapore law, the common-law requirements for a valid contract — offer, acceptance, consideration, and intention to create legal relations — and Section 8 of the Employment Act 1968 (Cap. 91) govern the core requirements for this type of document. Under Singapore law, Section 4 of the Stamp Duties Act (Cap. 312) and Section 13 of the Personal Data Protection Act 2012 (PDPA) govern the core requirements for this type of document. Under Singapore law, Section 6 of the Conveyancing and Law of Property Act (Cap. 61) and Section 12 of the Sale of Goods Act (Cap. 393) govern the core requirements for this type of document. Under Singapore law, Section 3 of the Supply of Goods Act (Cap. 394) and Section 3 of the Trustees Act (Cap. 337) govern the core requirements for this type of document. Under Singapore law, Section 7 of the Wills Act (Cap. 352) and Section 24 of the Limitation Act (Cap. 163) govern the core requirements for this type of document.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Settlement Agreement (Singapore) (Singapore) [Legal document template]. Forms Legal. https://forms-legal.com/singapore/business/contracts/settlement-agreement-singapore
"Settlement Agreement (Singapore) (Singapore)." Forms Legal, 2026, https://forms-legal.com/singapore/business/contracts/settlement-agreement-singapore.
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title = {Settlement Agreement (Singapore) (Singapore)},
year = {2026},
howpublished = {\url{https://forms-legal.com/singapore/business/contracts/settlement-agreement-singapore}},
note = {Free legal document template. Based on Companies Act 1967 (Cap. 50)}
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Frequently Asked Questions
Yes. A settlement agreement is a contract under Singapore law and is fully enforceable if it satisfies the basic requirements of a valid contract: offer, acceptance, consideration, intention to create legal relations, and certainty of terms. The consideration is typically the settlement sum paid in exchange for a release of claims. Singapore courts consistently uphold settlement agreements and will not set them aside except for vitiating factors such as misrepresentation, duress, undue influence, or mistake. If one party breaches the settlement agreement, the other may sue for breach of contract or apply for summary judgment. Under Singapore law, specifically the Companies Act 1967 (Cap. 50), parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.
A settlement agreement does not generally need to be witnessed or notarised to be enforceable in Singapore, unless it involves real property (in which case execution as a deed is required). However, having the agreement witnessed adds evidential weight in any subsequent dispute about execution. For settlement agreements reached during court proceedings, the terms may be recorded as a consent order of the court, which provides additional enforcement mechanisms including committal for contempt.
Yes. Settlement agreements are commonly used to resolve employment disputes in Singapore, including disputes about wrongful dismissal, salary arrears, and breach of employment contract. Under the Employment Claims Act 2016, mediation at the Tripartite Alliance for Dispute Management (TADM) frequently results in a settlement agreement which, when approved by an Employment Claims Tribunal (ECT) Commissioner, has the effect of an ECT order and is enforceable as such. Parties may also enter into private settlement agreements outside the ECT process. Under Singapore law, specifically the Companies Act 1967 (Cap. 50), parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.
In Singapore, settlement negotiations conducted on a 'without prejudice' basis are protected from disclosure in court proceedings. This means that offers, admissions, and concessions made in the course of settlement discussions cannot be used as evidence in any subsequent litigation. The 'without prejudice' rule is recognised under section 23 of the Evidence Act (Cap. 97) and by Singapore courts as a matter of public policy encouraging settlement. Once the parties reach a final settlement agreement, the agreement itself is no longer 'without prejudice' and is fully admissible and enforceable. Under Singapore law, specifically the Companies Act 1967 (Cap. 50), parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.
A Settlement Agreement (Singapore) does not legally require a lawyer in Singapore, and individuals and businesses may draft and execute the document independently. The Companies Act 1967 (Cap. 50) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Singapore lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of Singapore has jurisdiction over disputes arising from this type of document, and Accounting and Corporate Regulatory Authority (ACRA) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
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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