Document background
The Court Settlement Agreement is a crucial legal document used in Pakistani courts when parties decide to resolve their dispute through mutual agreement rather than continuing litigation. This document type is specifically recognized under Order XXIII Rule 3 of the Civil Procedure Code 1908 and must comply with Pakistani contract law requirements. It serves as a comprehensive record of the settlement terms, typically used when parties reach an agreement during ongoing court proceedings or through court-annexed mediation. The agreement covers essential elements such as the nature of the dispute, agreed resolution terms, implementation timeline, and mutual releases. Once approved by the court, the Court Settlement Agreement becomes equivalent to a court decree, making it directly enforceable under Pakistani law. This document is particularly valuable for achieving finality in disputes while saving time and resources that would otherwise be spent in prolonged litigation.
