Parties resist settlement agreements and often regret making them.
FACTS Parties in a recent Massachusetts case agreed on a settlement number but the agreement was silent on when the payments were to be made. The party making payments wanted to stretch out payments over time. The receiving party wanted its money right away.
ISSUE The lawsuit over the settlement left the court to decide – was the deal incomplete and unenforceable without a time for payment term? Or could the court supply a reasonable time and enforce the agreement?
HOLDING The terms here were sufficiently complete and definite the Court enforced the agreement with an order to pay within a reasonable time.
REASONS Contracts won’t fail if the court can supply a reasonable term for one omitted if there is a meeting of the minds on major terms. Courts also don’t want cases reported settled to get reopened.
COMMENT Good lawyers know that when the deal is struck it needs to be memorialized.