Document background
The Dispute Settlement Agreement is a crucial legal instrument used when parties wish to formally resolve their disputes without continuing or initiating litigation in Switzerland. This document is particularly relevant when parties have reached a mutual understanding on resolving their differences and need to document their settlement in a legally binding format under Swiss law. It typically arises from commercial disputes, contractual disagreements, or other business-related conflicts where parties prefer a negotiated solution. The agreement must comply with Swiss legal requirements, particularly the Swiss Code of Obligations and Civil Procedure Code, and can be used both for domestic Swiss disputes and international disputes where Swiss law is the governing law. It serves to prevent future litigation, provides clarity on settlement terms, and offers a legally enforceable framework for implementing the agreed resolution.
