Settlement Agreement Letter Sample

[Your Name / Law Firm]
[Your Address]
[City, State ZIP]
[Your Email]

2026-07-06

[Recipient Name]
[Company Name]
[Address]

Re: settlement agreement - [Reference Number]

Dear [Recipient Name],

This letter serves as a formal settlement proposal regarding [describe dispute]. We are writing in good faith to resolve this matter amicably and avoid further legal proceedings.

Terms of Settlement

Settlement Amount: $[amount] to be paid as lump sum or installments
Payment Schedule: [specific payment terms]
Release of Claims: Upon full payment, both parties release each other from all claims
Confidentiality: Terms shall remain confidential

If you agree, please sign and return by [deadline]. We believe this represents a fair resolution for both parties.

Sincerely,

(signature)

[Your Name]
[Your Title]
[Organization Name]

About this Letter

What it does

This settlement agreement letter letter sample provides a structured template for professional correspondence. It includes all the standard sections of a formal letter — sender information, date, recipient details, subject line, body paragraphs, and signature — formatted according to conventional business letter standards.

Best use cases

Professional correspondence and communication
Employment and career-related documentation
Personal and formal announcements
Business and legal notifications

Tips for best results

Personalize the content to reflect your specific situation rather than using generic language. Keep paragraphs short and focused. Proofread carefully for typos and grammatical errors. Use a professional font and maintain consistent formatting. If sending electronically, convert to PDF to preserve the layout.

Expected output

A complete, professionally formatted letter ready for your specific use case. The structure follows standard business letter conventions with clear sections for sender information, date, recipient, subject line, body, and signature block.

Customization ideas

Add your company letterhead or personal branding. Adjust the tone to match your relationship with the recipient (formal, semi-formal, warm). Expand or condense body paragraphs based on your needs. Include specific dates, names, and details relevant to your situation.

Frequently Asked Questions

What is a "Settlement Agreement Letter" used for?

A Settlement Agreement Letter letter is a formal document used to communicate in professional, employment, or personal contexts. This sample provides a ready-to-use template that follows standard conventions.

Can I customize this Settlement Agreement Letter letter sample?

Absolutely. This letter serves as a flexible starting point. Adjust the tone, specific details, and length to match your situation. Add your personal or company letterhead, modify the body paragraphs to reflect your circumstances.

What format should I use to send this letter?

You can download it as a PDF for a professional, print-ready format, or as a DOCX file for further editing in Microsoft Word, Google Docs, or any word processor.

Is this letter sample free to use?

Yes, all letter samples on AI Bloater are completely free to use. You can copy, customize, and use them for personal or professional purposes. No attribution or registration required.