Once a dilapidations claim has been settled, it is important for the parties to formalise the settlement by way of a binding agreement. This will set out, in detail, the precise terms of the agreement and make it clear that the settlement sum is payment in return for release of the obligations under the terms of the lease which gave rise to the breaches and subsequent claim. Therefore, the settlement sum is ‘consideration’ in return for forbearance against the terms of the lease not being observed. Accordingly, the settlement agreement acts as a contract of accord and satisfaction and is therefore enforceable once signed.
We can assist the parties in the drafting of a ‘Settlement Agreement & Form of Release’ which has been the subject of input from several partner-level solicitors.
We provide this service regardless of whether we have been appointed by the Landlord or the Tenant in the claim proceedings.