Vaststellingsovereenkomst
Settlement Agreement
A settlement agreement is an agreement whereby the parties determine an uncertain or disputed legal consequence in order to end or prevent a dispute.
In Dutch law, a compromise agreement is governed by Article 7:900 of the Civil Code. By entering into such an agreement, the parties determine a legal consequence that is uncertain or disputed between them, thereby definitively regulating their legal relationship without judicial intervention.
The agreement is relevant in that it enables the parties to remove uncertainty and avoid further proceedings or disputes. It has binding effect and may result in an amicable settlement that creates legal certainty for both parties.
In practice, compromise agreements are frequently used in employment disputes, commercial conflicts or family matters to achieve a final resolution without protracted legal proceedings.
“The employer and the employee entered into a settlement agreement to terminate the employment relationship by mutual consent.”
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