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11 - Settlement Agreement
from Part IV - Innominate Contracts
Christoph Müller, Université de Neuchâtel, Switzerland
Book:

Swiss Contract Law in International Commercial Arbitration

Published online:

27 July 2023

Print publication:

10 August 2023, pp 669-684
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Summary

This chapter examines the settlement agreement, namely the contract by which the parties put an end to a dispute or to an uncertainty in which they find themselves concerning a legal relationship by reciprocal concessions. This chapter firstly explores the notion of a settlement agreement and its functions before examining the various types of settlement agreement. This chapter secondly analyses the legal nature of the settlement agreement before turning to its delimitations with other institutions found under Swiss law. This chapter then moves on to the conclusion of the settlement agreement and analyses, in particular, the applicable formal requirements, the settlement negotiations, the effects on joint and several debtors as well as the invalidation of the settlement agreement due to lack of consent notably for unfair advantage and fundamental mistake. Finally, this chapter examines the end of the settlement agreement.