Release And Settlement Of Claim for Malaysia

Release And Settlement Of Claim Template for Malaysia

A comprehensive legal document governed by Malaysian law that formalizes the settlement of claims between parties. This agreement outlines the terms and conditions under which one party agrees to release claims against another party in exchange for specified consideration, typically monetary compensation. The document incorporates key provisions of Malaysian contract law, including elements from the Contracts Act 1950 and Civil Law Act 1956, ensuring enforceability within the Malaysian legal system. It serves as a binding resolution to disputes and provides finality to legal claims while protecting the interests of all involved parties.

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What is a Release And Settlement Of Claim?

The Release And Settlement of Claim agreement is a crucial legal instrument used in Malaysian business and civil contexts to formally resolve disputes and prevent future litigation. This document becomes necessary when parties wish to settle existing or potential claims through negotiation rather than court proceedings. It is particularly relevant in situations involving commercial disputes, employment matters, personal injury claims, or contractual disagreements. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and the Limitation Act 1953, and typically includes specific provisions for payment terms, release of claims, confidentiality, and non-admission of liability. It serves as a permanent bar to future claims regarding the same subject matter and provides certainty and closure for all parties involved.

What sections should be included in a Release And Settlement Of Claim?

1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses

2. Background: Recitals explaining the context of the dispute and the parties' intention to settle

3. Definitions: Defines key terms used throughout the agreement

4. Settlement Sum: Specifies the agreed settlement amount and payment terms

5. Release: Details the scope of claims being released and waived

6. Full and Final Settlement: Confirms that this settlement represents a complete resolution of all claims

7. Non-Admission of Liability: States that the settlement does not constitute an admission of liability by any party

8. Representations and Warranties: Parties' confirmations regarding their authority and understanding of the agreement

9. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and determines jurisdiction for disputes

10. Execution: Formal signing requirements and execution provisions

What sections are optional to include in a Release And Settlement Of Claim?

1. Confidentiality: Terms requiring parties to keep the settlement and its terms confidential - used when privacy is important

2. Tax Implications: Addresses responsibility for taxes arising from the settlement payment - used when tax liability needs clarification

3. Insurance: Provisions relating to insurance coverage and insurers - used when insurance companies are involved in the settlement

4. Future Cooperation: Obligations for parties to cooperate in implementing the settlement - used in complex settlements requiring ongoing actions

5. Return of Property/Documents: Requirements for returning any relevant property or documents - used when physical items or documents need to be exchanged

6. Non-Disparagement: Prohibits parties from making negative statements about each other - used in sensitive or public cases

7. Severability: Provides for survival of agreement if certain provisions are found invalid - used in complex agreements

What schedules should be included in a Release And Settlement Of Claim?

1. Schedule 1 - Claim Details: Detailed description of the original claim or dispute being settled

2. Schedule 2 - Payment Schedule: Detailed payment terms and installment schedule if applicable

3. Schedule 3 - Related Proceedings: List of any legal proceedings to be discontinued as part of the settlement

4. Schedule 4 - Released Parties: Comprehensive list of all parties receiving releases under the agreement

5. Appendix A - Supporting Documents: Copies of relevant documents referenced in the settlement

6. Appendix B - Form of Notice of Discontinuance: Template for formally discontinuing any legal proceedings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Release Agreement

Cost

Free to use
Relevant Industries

Financial Services

Insurance

Construction

Manufacturing

Real Estate

Healthcare

Retail

Professional Services

Technology

Transportation and Logistics

Energy and Utilities

Telecommunications

Relevant Teams

Legal

Compliance

Risk Management

Corporate Affairs

Human Resources

Finance

Insurance

Operations

Corporate Secretariat

Dispute Resolution

Relevant Roles

Legal Counsel

Risk Manager

Compliance Officer

Chief Legal Officer

Claims Manager

Settlement Officer

Corporate Secretary

General Counsel

Litigation Manager

Business Development Manager

Contract Administrator

Human Resources Director

Chief Financial Officer

Insurance Claims Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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