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Drafting

Settlement Draft

Draft settlement agreements from negotiation notes and term sheets. Legally effective, balanced, and structured for execution.

When to use this skill

Documenting agreed terms at the end of a negotiation or mediation
Drafting the settlement agreement from a heads-of-terms or term sheet
Translating a verbal settlement reached in court into a written binding document
Preparing a release of claims agreement as part of a commercial dispute resolution
Drafting a confidential settlement with non-disclosure obligations

What you get

Deliverable

  • Recitals summarising the background and dispute
  • Full and final settlement amount, payment mechanics, and schedule
  • Mutual releases drafted to the agreed scope
  • Surviving obligations (confidentiality, non-disparagement, cooperation)
  • Execution block and governing law / jurisdiction clause

What this skill does

Settlement Draft converts a term sheet, a set of negotiation notes, or a mediator's proposal into a complete, legally effective settlement agreement ready for parties to review and execute. It handles the transition from the commercial agreement in principle to the binding legal document that closes the dispute.

The skill covers all settlement contexts: litigation settlement (where the agreement must be capable of being submitted to the court for approval or recording), arbitral settlement, commercial mediation outcomes, employment dispute settlements, and bilateral commercial dispute resolutions. It applies the appropriate formal requirements for each context under Swiss law, including the provisions required for a settlement agreement to constitute a binding transaction under OR and for a court-approved settlement to have enforceable effect under ZPO.

Particular care is taken with the release and waiver provisions — the most critical and most often poorly drafted element of any settlement agreement. The skill drafts releases that are comprehensive without being ambiguous, specific enough to close the dispute definitively, and enforceable under the governing law.

When to use it

  • After a mediation session, converting the mediator's term sheet into a formal settlement agreement
  • Following successful negotiation of a dispute, drafting the settlement agreement from the agreed commercial terms
  • Preparing a settlement agreement in an employment dispute, including the required language for a valid waiver of statutory claims under Swiss law
  • Drafting a court settlement (Vergleich) for submission to the court in current proceedings

What you get

A complete settlement agreement with: Recitals (setting out the dispute and the parties' desire to settle), Payment Obligations (amounts, timing, and payment mechanics), Release and Waiver Provisions (comprehensive mutual release in the appropriate form), Confidentiality (terms of the settlement), Costs (how costs of the dispute are to be borne), Court Proceedings (withdrawal or discontinuation of any pending proceedings), Breach and Remedies, Governing Law and Jurisdiction, and Execution Blocks. A separate note is included on any formal requirements for the agreement to be enforceable (e.g., notarisation requirements).

Example prompt inputs

  • "Mediation outcome term sheet in a commercial contract dispute — CHF 150,000 payment, mutual release, confidentiality. Please draft the formal settlement agreement"
  • "Employment dispute settlement — my client pays 3 months' salary, employee withdraws complaint to cantonal employment tribunal, full waiver of all employment claims"
  • "Shareholder dispute settlement — A buys out B's shares at agreed price, mutual release of all claims arising from the joint venture"
  • "A neighbour dispute that has been resolved — we need a clean agreement recording the agreement and releasing all claims"

Why legal-specific AI matters here

A poorly drafted settlement agreement can leave the dispute unresolved. A release that does not cover the right claims, a waiver that does not meet Swiss mandatory law requirements, a governing law clause that does not make the agreement enforceable in the jurisdiction where it needs to be — these are drafting failures that turn a resolved dispute into a new one. Whisperit's Settlement Draft skill is trained on Swiss settlement drafting practice and understands the specific mandatory requirements for valid settlements and waivers of statutory rights under Swiss law.

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