You have managed to agree a solution with your customer, and they are going to pay you! That is excellent news, but how can you protect your business after settlement?

Here are 3 possible options for you:-

1.     Verbal agreement

This is the least safe option, but if you have a long-standing business relationship with your customer, you may prefer this option so that business can resume as soon as possible.   At the very least, try to get your customer to agree to something in writing, even if that is just a text message.

2.     Send an email. 

This option is also not the safest but again it may help you move forward with your customer. If you can try to get your customer to respond to your email confirming the agreement reached it may help you if the agreement falls apart in future.

3.     Settlement agreement.

The safest option is a settlement agreement, especially if it has been prepared by a qualified lawyer. It should properly set out the agreed terms, contain mechanisms for confidentiality, and clearly state what should happen if the agreement is broken.  

We regularly help business owners to resolve disputes and to safely protect their interests. If you’d like an informal chat about a dispute, send me a message.

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