Sovintosopimus

A sovintosopimus, or settlement agreement, is a contract under Finnish law in which disputing parties agree on terms to resolve their claims and thereby end the dispute. It can be reached before a court, during mediation, or in the context of arbitration. Settlement agreements are commonly used in civil cases, employment disputes, consumer disputes, and family matters, among others.

A sovintosopimus typically sets out the essential terms of the resolution. This can include the amount of any payment or other performance, timing and manner of fulfillment, waivers of further claims, and allocation of costs. The agreement may also contain confidentiality provisions, non-disparagement clauses, and conditions related to future relationships between the parties. Any ongoing obligations or future dispute mechanisms are described to prevent new conflicts.

As a contract, a sovintosopimus is binding on the parties. Its principal purpose is to terminate the dispute and prevent further litigation. If the dispute has already been brought to court, the court may approve, record, or incorporate the agreement, giving it enforceability with the force of a judgment in many respects. Breach of the settlement is typically treated as a breach of the contract, allowing remedies available for contract breaches, such as damages or specific performance, through ordinary courts.

Form and enforceability are important considerations. The agreement is usually prepared in writing, and amendments should also be in writing to avoid later disputes about what was agreed. Parties and their counsel should consider clarifying terms, potential tax implications, and any applicable regulatory or confidentiality requirements when drafting the sovintosopimus.