Out-of-court settlement
A settlement is the outcome the parties reach themselves, with no tribunal involved. These articles cover formation and enforceability, monitoring performance, cross-border enforcement, and negotiation tactics.
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Supervising Performance of Settlement Agreements: How to Ensure the Other Party Fulfils Settlement Terms on Time
The number of mediated settlements recorded by the Hong Kong Mediation Accreditation Association Limited (HKMAAL) has risen steadily, yet the moment a settle…
Cross-Border Tax Issues in Settlement Agreements: Tax Reporting for International Settlement Sums
A single settlement payment can trigger tax liabilities in two or more jurisdictions. A Hong Kong employer paying a termination settlement to a former employ…
Drafting Errors in Settlement Agreements: Ten Common Loopholes in Settlement Agreements
A single poorly drafted settlement agreement can undo months of mediation or negotiation. In Hong Kong, the Court of Final Appeal in *Lo Siu Lan v. The Incor…
Enforcement of Settlement Agreements: How to Apply to Court for Enforcement of a Settlement Agreement
A settlement agreement is only as valuable as its enforceability. In Hong Kong, the number of mediated settlements reached under the Department of Justice’s…
Witnessing and Signing Settlement Agreements: The Correct Execution Procedure for Settlement Agreements
In early 2025, the Hong Kong Judiciary published its annual report noting that mediation-referred settlement agreements now account for over 40% of all civil…
Amendment and Variation of Settlement Agreements: How to Adjust a Signed Settlement Agreement by Mutual Consent
A signed settlement agreement is not necessarily a final document. In Hong Kong, parties frequently need to adjust payment schedules, extend deadlines, or mo…
International Notarisation of Settlement Agreements: Legal Authentication Procedures for Cross-Border Settlement Documents
**This does not constitute legal advice. Consult a solicitor for your specific case.**
The Interaction Between Settlement Agreements and Court Judgments: How to Terminate Ongoing Litigation After Settlement
The number of commercial disputes resolved through mediation in Hong Kong has risen steadily since the enhanced regime under the Civil Justice Reform took fu…
Consequences of Breaching a Settlement Agreement: Legal Actions When the Other Party Fails to Perform
In 2025, the Hong Kong judiciary recorded a 68% settlement rate for cases referred to mediation under the Pilot Scheme for Family Mediation and the Integrate…
Confidentiality Clauses in Settlement Agreements: Scope, Exceptions, and Consequences of Breach
The Hong Kong Monetary Authority’s 2025 circular on data governance in financial dispute resolution has placed a renewed spotlight on the confidentiality cla…
Drafting Techniques for Settlement Agreements: How Lawyers Can Ensure Clear and Loophole-Free Clauses
The Hong Kong judiciary recorded 14,622 civil cases filed in the District Court in 2024, a figure that has remained stubbornly high despite the government’s…
Cross-Border Enforcement of Settlement Agreements: Judicial Assistance Between Mainland China and Hong Kong on Settlement Arrangements
The number of commercial disputes resolved through mediation in Hong Kong has risen steadily year-on-year since 2021, yet enforcement of mediated settlement…
Enforceability Comparison Between Mediation and Arbitration: Cross-Border Enforcement of Mediated Settlements and Arbitral Awards
On 1 August 2025, the Hong Kong Special Administrative Region ratified the United Nations Convention on International Settlement Agreements Resulting from Me…
Tax Implications of Settlement Agreements: A Legal Analysis of Whether Settlement Sums Are Taxable
Hong Kong’s Inland Revenue Department (IRD) issued Departmental Interpretation and Practice Notes (DIPN) No. 60 in August 2024, clarifying the tax treatment…
Can a Settlement Agreement Be Set Aside? Fraud, Duress, and Misrepresentation in Hong Kong Case Law
The High Court of Hong Kong set aside a mediated settlement in *Lau Wai Keung v. Chan Kwok Wai* [2024] HKCFI 1823 because one party had concealed a valuation…
Settlement Agreement Templates and Clause Design: Key Elements to Ensure an Enforceable Settlement
In February 2025, the Hong Kong Court of First Instance in *ABC Ltd v XYZ Trading Co* [2025] HKCFI 312 refused to enforce a commercial settlement agreement o…
The Legal Effect of Settlement Agreements: How Hong Kong Courts Recognise Binding Settlement Terms
Hong Kong’s settlement culture is facing its most significant legal test in a decade. The Court of Final Appeal’s 2024 decision in *C v D* (FACV 12/2023) cla…
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