What is a settlement agreement?

A settlement agreement is a legally binding contract between two parties, usually following a dispute or a legal claim. In North Carolina, these agreements are often used in accident law when two parties agree to settle a personal injury claim without a trial or other legal proceedings. Generally, the injury victim agrees to receive a cash payout from the responsible party in exchange for dropping the legal claim. In North Carolina, the amount of compensation is determined on a case-by-case basis and cannot be based on a predetermined fee structure or standard fee. The settlement agreement also typically requires both parties to keep the details of the settlement confidential. This means that the injury victim cannot discuss the settlement with anyone else, including press or media outlets. In addition, the injury victim must agree to not file any additional claims against the responsible party. The settlement agreement usually also includes a non-disparagement clause, which states that neither party can speak negatively about the other nor the details of the settlement. In North Carolina, settlement agreements are the most common resolution to a personal injury claim. By agreeing to a settlement, both parties can avoid a costly legal battle and have closure of the dispute. It is important to remember, however, that the injury victim cannot pursue a legal claim against the responsible party after signing the settlement agreement.

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