Sample Compromise Agreement Civil Case

When two parties decide to settle a civil case outside of court, a compromise agreement is often drafted to outline the terms of the settlement. This agreement lays out the agreed-upon terms and serves as a legally binding document between both parties.

If you are in the midst of a civil case and considering a compromise agreement, it is important to understand what such an agreement entails. Here is a sample compromise agreement for a civil case to give you an idea of what to expect:


This agreement is made between [Plaintiff’s Name], hereafter referred to as “Plaintiff,” and [Defendant’s Name], hereafter referred to as “Defendant,” with respect to civil case number [Case Number] pending in the [Court Name].


The parties to the above-captioned case have entered into this compromise agreement to settle the claims asserted in the above-captioned action, without any admission of liability or wrongdoing by either party.


In consideration of the mutual promises and covenants contained herein, the parties agree as follows:

1. The Defendant agrees to pay the Plaintiff [Settlement Amount] in full and final settlement of all claims alleged in the above-captioned action.

2. The Plaintiff agrees to accept the settlement amount in full and final satisfaction of all claims asserted in the above-captioned action and to dismiss the lawsuit with prejudice.

3. Each party will bear their own attorneys’ fees and costs associated with this lawsuit.

4. The parties acknowledge that this agreement constitutes the entire agreement between the parties regarding the settlement of the above-captioned action and supersedes all prior negotiations, understandings, and agreements between the parties.

5. This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, and assigns.

6. This agreement shall be governed by and construed in accordance with the laws of [State], and any legal action arising out of or relating to this agreement shall be brought in the courts of [State].

7. This agreement may not be amended or modified except in writing signed by both parties.

8. This agreement is executed in duplicate counterparts, each of which shall be deemed an original and together shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written.

_________________________ _________________________

[Plaintiff’s Name] [Defendant’s Name]

This sample compromise agreement for a civil case provides a basic idea of what to expect when entering into such an agreement. It is essential to review the terms and conditions carefully with your attorney to ensure that you fully understand the implications of the settlement. Remember, a compromise agreement is a legally binding document, so it is crucial to take the time to consider all of the terms and negotiate the best possible outcome for your situation.