To enforce or not to enforce: If that's the question about a settlement, the answer the court gives can vary

摘要

Wondering whether a settlement you've drawn up is enforceable? Consider this scenario: a logistics services provider is sued by one of its customers for negligence and breach of contract with respect to transportation and logistics services the company provided. The 4PL offers to settle the dispute; the customer accepts the offer and is delighted with the deal. But the 4PL has second thoughts and wants to undo the settlement and avoid having to comply with its terms. Can the provider do that? Has a binding settlement not been drawn up? And will the court enforce the settlement? The answer to all these questions is the same: it depends. The factual background and context of the settlement agreement as well as the pertinent principles of law - including those relating to contract law, the law of agency, the rules of equity, and rules of procedure - must be understood before reaching any conclusions as to whether there is a binding and enforceable settlement in any given case. Some of these principles are summarized below.