They agreed to settle, then changed their mind.

Agreement on a figure may leave terms unresolved

After a long phone call, two business owners say they have a deal. A draft follows, but one party then demands a different release and a larger payment. The other owner believes the agreement was already final. The next step is to preserve the exact exchange and obtain advice on what, if anything, became binding, rather than simply declaring the matter settled or abandoned.

Preserve the whole negotiation

Keep emails, draft versions, messages and contemporaneous notes of calls. Record who participated and what authority they had. Do not overwrite an earlier draft with the final version or remove wording that now appears inconvenient.

Create a chronology showing offers, responses, conditions and any actions taken in reliance on the discussion. The sequence may matter as much as the final message. Clearly distinguish actual words from your interpretation of what the other person intended.

Identify what remained open

List the amount, timing, costs, release scope and any requirement for signature or approval. Ask which matters the other party says were unresolved. A shared payment figure does not necessarily mean every essential term was agreed.

Business.gov.au explains that contracts may take different forms, including verbal and partly written arrangements. Whether this particular exchange created a binding settlement requires assessment. Do not assume either that a signature is always necessary or that saying 'agreed' always finishes the matter.

Source: Types of contracts — business.gov.au

Get advice before taking an inconsistent step

Ask what rights and obligations follow from the actual communications. Do not make a fresh offer, terminate proceedings or issue a new demand without understanding whether that action conflicts with an existing agreement.

If court dates or other deadlines remain, keep them active unless properly changed. A disagreement about settlement formation does not itself suspend the underlying matter. Give the adviser both the original dispute and the settlement history.

Choose a practical route forward

The options may include clarifying terms, completing an agreement, enforcing an existing one or continuing the original dispute. Compare the costs and risks rather than assuming the strongest-sounding response is best.

If a revised settlement is reached, make the final position clear and preserve it. Identify what replaces earlier proposals and what steps complete the bargain. A well-documented conclusion is more useful than another round of ambiguous assurances.

Establish whether a settlement was reached

Preserve the complete offer, response and draft history.

List agreed terms, conditions and matters that remained open.

Obtain advice on whether an agreement exists before changing position or taking further action.

Call CRP today about coordinating advice on a disputed settlement agreement.