Compromise agreement

When trying to resolve a dispute, there’s often a need to be

pragmatic and agree a compromise solution. Use our agreement

to achieve a binding settlement.

Advice

Under English law, where a debt is owed, payment of a lesser amount isn’t seen as binding on

the creditor, unless there’s either been a dispute or there’s been a fresh element introduced,

e.g. different place of payment, different time etc.

Tip

To avoid disputes over what’s binding and what isn’t, make sure that if you’re looking to enter into

a compromise agreement, you draw up a deed. This will avoid the issues of contract law applying

to what you’ve agreed.