SETTLEMENT AGREEMENT AS A METHOD OF ALTERNATIVE DISPUTE RESOLUTION IN COMMERCIAL DISPUTES

Abstract

A settlement agreement is one of the most effective instruments of alternative settlement of economic disputes, combining the flexibility of the negotiation process and the legal certainty of a court decision. In the context of increasing burden on the judicial system and increasing costs of litigation, out-of-court and conciliatory procedures aimed at quick, economical and mutually beneficial settlement of conflicts between business entities are becoming particularly relevant. A settlement agreement allows the parties to independently determine acceptable terms for settling a dispute, taking into account their commercial interests, preserve business relations and minimize reputational risks. The article examines the legal nature of a settlement agreement in the economic process, its place in the system of alternative dispute resolution methods, as well as its relationship with institutions such as mediation and arbitration. The regulatory and legal regulation of the conclusion, approval and implementation of a settlement agreement in accordance with the provisions of the Commercial Procedural Code of Ukraine is analyzed, and the procedural consequences of its approval by the court are also determined. Special attention is paid to the requirements for the content of a settlement agreement, the limits of the parties’ discretion and the grounds for the court’s refusal to approve it.

The author reveals the advantages of a settlement agreement as a way to optimize the terms of consideration of the case, reduce financial costs and ensure the confidentiality of dispute resolution. At the same time, potential risks of abuse of procedural rights, problematic aspects of the implementation of settlement agreements and issues of their appeal are outlined. Based on the analysis of judicial practice, conclusions are formulated regarding the effectiveness of the application of this institution in economic disputes.

As a result of the study, it is substantiated that a settlement agreement is an effective mechanism for implementing the principle of discretion and contributes to the formation of a modern culture of dispute resolution in the field of business. Its more active application corresponds to the trends in the development of the legal system of Ukraine and international standards of alternative dispute resolution, ensuring a balance between the private interests of the parties and the tasks of economic litigation.