Introduction to this document

Acceptance of proposal
to settle debt

You’re in the middle of litigation with a court hearing pending. You’ve just succeeded in settling your claim with the other side. Use our letter to wrap things up and bring about a conclusion to your case.


Settling a case by confirming things in writing acts like a contract - there’s an offer and an acceptance. This means that if one side later backs out, they can be sued.


Whenever you’re in touch with the other side (either on the phone or in writing) and you’re trying to negotiate a settlement, always stipulate that your dealings are on a “without prejudice” basis. This means that anything you say or write can’t ever be disclosed to the judge, except if you actually agree terms.

Ending the claim

Whatever you do, don’t end your claim until you’ve actually been paid and the cheque has been cleared. Specify when and how payment is to be made.