General agreements · Editor
Out-of-Court Settlement Agreement
Version: Short
OUT-OF-COURT SETTLEMENT AGREEMENT
In the city of Asunción, Republic of Paraguay, on [Date: e.g. 05/02/2026], appears on one side [Party A name: e.g. Juan Pérez], holder of ID No. [Party A ID: e.g. 1,234,567], domiciled at [Party A address: e.g. Asunción], hereinafter "PARTY A"; and on the other side [Party B name: e.g. María González], holder of ID/Tax ID No. [Party B ID/Tax ID: e.g. 80012345-6], domiciled at [Party B address: e.g. San Lorenzo], hereinafter "PARTY B". The parties state that they have sufficient capacity to bind themselves and agree to execute this private instrument, subject to the following clauses:
FIRST: PURPOSE
PARTY A and PARTY B agree to to amicably and out of court end differences arising from [Dispute: e.g. failure to deliver goods]. This agreement shall be interpreted in good faith, according to its economic purpose and prudent Paraguayan legal practice.
SECOND: PRICE AND PAYMENT METHOD
As consideration, price, rent, contribution or economic acknowledgment, according to the nature of the act, the parties establish [Settled amount: e.g. Gs. 6,000,000 (six million guaraníes)], as full and final payment of the indicated concepts. Every payment must be documented by receipt, bank voucher or sufficient written record.
THIRD: TERM
The term or effectiveness shall be [Performance date: e.g. 05/20/2026], with documented delivery or payment. Any extension, suspension or amendment must be made in writing and physically or digitally signed by the parties.
FOURTH: OBLIGATIONS OF THE PARTIES
- The parties waive future claims regarding the facts expressly covered by this agreement.
- Each party shall keep supporting documentation of its performance.
- The agreement does not imply admission of fault unless expressly stated.
EIGHTH: JURISDICTION
For any dispute arising from this instrument, the parties shall seek an amicable solution. If disagreement persists, they submit to the competent ordinary courts of the Republic of Paraguay, without prejudice to mandatory rules applicable by subject matter or territory.
NINTH: ACCEPTANCE
Having read this document and as evidence of agreement, the parties sign two counterparts of the same tenor and for one single effect, at the place and date indicated above.
PARTY A signature: ___________________________
PARTY B signature: ___________________________