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Settlement and Release Agreement: A Ready Template Certified by a Licensed Saudi Lawyer
- Category
- Debt collection and claims
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
An agreement that closes the dispute for good: a settlement amount, a payment schedule, a mutual or one-way release, and a request to end the case if one was filed.
Most commercial disputes end in negotiation rather than judgment, but a negotiation with no document leaves the door open to a fresh claim months later over the same matter. A settlement and release agreement is the paper that closes the file: it describes the dispute precisely, sets what is paid and when, and then releases the other party from what arose out of that specific dispute. Sighaty template B-03 is written for the Saudi context and the settlement and good-faith principles of the Civil Transactions Law, and it handles both situations: a dispute that never reached the courts, and a pending case the parties ask to have the settlement recorded in and closed. The template is bilingual with the Arabic text prevailing on any difference.
Get the Settlement and Release TemplateB-03What this agreement is and when you need it
A settlement agreement resolves a live disagreement for an agreed consideration and closes what follows it. Its heart is two clauses: the settlement amount and how it is paid, and the scope of the release, meaning exactly what is extinguished by this paper. The second is the more dangerous one, because a broad release drafted carelessly can waive rights unrelated to the dispute, while an overly narrow one leaves the counterparty free to return with a new claim over the same facts.
- A disagreement over invoices or deliverables that ended in an agreed final figure.
- A pending case the parties want the settlement recorded in and closed.
- Ending a troubled contractual relationship without leaving room for later claims.
What the smart-fill asks and what you receive
The smart-fill asks for Party 1 and Party 2 in Arabic and English with the CR or ID number of each, then for a description of the dispute, stating the case number and the court hearing it if a claim has been filed. It then asks for the settlement amount, whether it is paid on a single date or over a schedule, the IBAN it is transferred to, and whether the party's obligation is payment alone or also includes a specified additional act.
The fill-in then covers the scope of the release, including the one-way variant in which Party 1 releases Party 2, the written-notice period in days after which the settlement is treated as unperformed, the value of a Nafith promissory note issued for the settlement amount if there is one, who bears the court fees, and the court hearing the case or the competent court on any disagreement. Unused alternatives are stripped from the document.
Within minutes you receive a formatted bilingual Word document, ready to sign and editable before approval, taking you from a fragile verbal understanding to a document that states what was paid, what was waived, and what survives.
Why a lawyer-certified template beats a free download
A settlement is signed once and cannot be corrected afterwards, and that is where a free template costs more than it saves. Drafting the release as a sweeping phrase copied from a foreign form can make you waive what you never intended, and tying the release to signature rather than to the money actually arriving means you gave up your right before being paid. The Sighaty template is certified by a licensed Saudi lawyer, controls that sequence, separates the scope of the release from unrelated rights, and is updated as the regulations change, so you sign a settlement that closes the dispute without opening another.
Frequently asked questions
What is the difference between a mutual release and a one-way release?
In a mutual release each party releases the other from what arose out of the dispute being settled, which suits cases with claims on both sides. In a one-way release only Party 1 releases Party 2, which suits a case where the right belongs to one side and it agrees to settle. The template provides the one-way variant expressly, so you choose the form that reflects your actual dispute.
Does the settlement end a case already filed before a court?
The template is written to cover this case: the claim is identified by its number and the court hearing it in the description of the dispute, and the text includes the parties' request that the settlement be recorded and the case ended. The signed document is the basis for that request, while recording the settlement and closing the case remains a step taken before the body hearing it.
What if the settlement amount is not paid after signature?
The template includes a written-notice period that you set during fill-in, so if it passes and the sums are not paid as agreed the settlement is treated as unperformed in line with what the agreement provides. You can also reinforce the obligation with a Nafith promissory note for the settlement amount, giving you an additional collection instrument rather than relying on the wording alone.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.