A closure agreement, also known as a settlement agreement, is a legal document that outlines the terms and conditions of a settlement between two parties in a dispute. The agreement typically involves one party agreeing to pay a sum of money or provide some other form of consideration to the other party in exchange for the dispute being resolved and no further legal action being taken.

Closure agreements are often used in employment disputes, such as wrongful termination or discrimination cases, as a way to avoid lengthy and costly litigation. They can also be used in commercial disputes, such as breach of contract or intellectual property disputes.

The terms of a closure agreement can vary widely depending on the specific circumstances of the dispute. Typically, the agreement will include a confidentiality clause that prohibits either party from discussing the details of the settlement publicly. This is to protect the reputation and privacy of both parties.

In addition to the confidentiality clause, a closure agreement may also include clauses related to future employment. For example, a closure agreement in an employment dispute may include a non-disparagement clause that prevents either party from making negative comments about the other, or a non-compete clause that prohibits the employee from working for a competitor.

Overall, a closure agreement is an important tool for resolving disputes and avoiding costly litigation. If you are involved in a dispute and are considering a closure agreement, it is important to consult with an experienced attorney to ensure that your rights and interests are protected.