Settlement agreements that are made orders of court

Abstract

Disputes can arise for numerous reasons, including misunderstandings, non-performance, differing interpretations of contractual terms, or unforeseen events, and they may occur in commercial, labour, familial, or other contexts. While some disputes are resolved informally, others necessitate formal resolution mechanisms such as litigation. However, parties often prefer to settle disputes through settlement agreements to avoid the costs and uncertainty of legal proceedings. These agreements serve as binding legal instruments offering remedies like compensation or specific performance and can be concluded before or during litigation, often facilitated through negotiation, mediation, or arbitration. The drafting of such agreements is critical, as it represents the first act of interpretation and shapes how the agreement will be understood by courts or adjudicators. This study explores the complexities surrounding the interpretation of settlement agreements once they are made orders of court, examining conflicting judicial decisions and academic opinions on whether such agreements retain their contractual nature or are subject to court rules of interpretation.