In brief
The settlement agreement is regulated by the Dutch Civil Code (Articles 900-910 BW) and is a legally binding document for the parties.
Settlement agreements may deviate from mandatory law in accordance with the law if they are not contrary to public order or morality. The law states in Article 912 of the Dutch Civil Code: A determination to end uncertainty or dispute in the area of property law is also valid if it appears to be in conflict with mandatory law, unless it is also contrary to morality in content or purport or public order. “
In detail…
Settlement Agreement
The settlement agreement is regulated by the Dutch Civil Code (Articles 900-910 BW) and is a legally binding document for the parties.
Settlement agreements may deviate from mandatory law in accordance with the law if they are not contrary to public order or morality. The law states in Article 912 of the Dutch Civil Code: A determination to end uncertainty or dispute in the area of property law is also valid if it appears to be in conflict with mandatory law, unless it is also contrary to morality in content or purport or public order. “
Legal force settlement agreement
Even if the parties include provisions in their settlement agreement that are contrary to mandatory law, they are still bound by the settlement agreement. The settlement agreement is an independent legal title. In the event that a settlement agreement is reviewed by a court, he no longer looks at the history or legal backgrounds, but only starts from the new legal situation (the new legal relationship) that has arisen by signing the settlement agreement.
You should therefore realize that the signed settlement agreement can only be annulled or dissolved by the judge to a limited extent.
In day-to-day legal practice, it often happens that the parties still reach an amicable settlement during an ongoing legal procedure, before a court decides on a procedure. The proceedings can then be withdrawn by the parties or this arrangement is then recorded in a settlement agreement which is then recorded in an official report of the court hearing.
The advantage of the court placing “In the name of the King” on the official report is that the official report has legal force and thus compliance with the agreements made in court.
Examples of settlement agreements
- Dismissal by mutual consent.
- Agreement between the parties on compensation as a result of breach of contract or tort. This will then be recorded in a settlement agreement.
- Settlement Agreement for Personal Injury Claims
- In all other cases, the recording of agreements made between the parties can be recorded in a settlement agreement in order to prevent or terminate legal proceedings. Third parties can possibly be bound by a so-called third-party clause.
Therefore please direct contact with JAW Advocaten if you would like support in the realization of a settlement agreement.
Responsible lawyer:
- mr. D. (Dave) IJpelaar
- mr. J. (Jochem) Verheij
- mr. C.J. (Jerome) van der Have
- mr. H.P. (Peter) Schouten
- mr. E.H.J. (Eric) aan de Stegge
Jurisdiction: