Non Compromise Agreement Template for Singapore

When you're involved in complex business disputes or negotiations in Singapore, you may need to resolve some issues while maintaining your legal position on others. A Non Compromise Agreement allows you to do exactly this by creating a clear legal framework that protects your rights during partial settlements or ongoing discussions.

When do you need this document?

You'll need a Non Compromise Agreement when engaging in settlement discussions where you want to resolve certain matters without prejudicing your position on remaining issues. This is particularly common in commercial disputes where parties may agree on some aspects while maintaining their stance on core liability or damages questions. Employment disputes often require this approach when resolving procedural matters while preserving claims about wrongful termination or discrimination. Insurance claims frequently involve partial settlements where coverage for some items is accepted while disputed coverage remains under negotiation. The document is also essential when multiple related claims exist and you want to settle some while preserving others for future resolution.

Key legal considerations

The most critical element is the precise definition of what rights and positions are being preserved versus what is being compromised or settled. You must clearly identify all parties and their legal representatives to ensure the agreement binds the appropriate entities. The non-compromise provisions should be specific and unambiguous, stating exactly which claims, defenses, or legal positions remain unaffected. Rights reserved clauses must comprehensively list all preserved rights to prevent unintended waiver through omission. The agreement should include acknowledgments from all parties that they understand which matters are being settled and which remain open. Consider including provisions about how future communications will be handled to avoid creating new compromise situations.

Legal requirements in Singapore

Under Singapore's Contract Law Act 1961, your Non Compromise Agreement must satisfy basic contractual requirements including offer, acceptance, consideration, and intention to create legal relations. The agreement must comply with common law principles governing contract formation and enforcement in Singapore courts. If the underlying dispute involves employment matters, ensure compliance with the Employment Act and Employment Claims Act requirements. Electronic execution is permitted under the Electronic Transactions Act, provided proper digital signature protocols are followed. The governing law clause should specify Singapore law to ensure local court jurisdiction and application of Singapore legal principles. Consider whether the Unfair Contract Terms Act applies if one party has significantly greater bargaining power, as this may affect enforceability of certain exclusion clauses.