Settlement Agreement Confidentiality Clause

[CLMoses]

Texas

If I write 'full and final payment' in the memo line of a money order used to make a one-time lump sum payment to settle a debt, is that a breach of the confidentiality clause that says, 'both parties agree to keep the terms of this settlement agreement confidential'?

 

[quincy]

It shouldn’t be - but writing anything at all in the memo line really means nothing so it is an unnecessary addition. Read over your agreement or ask your attorney/the other party’s attorney.

 

[Taxing Matters]

Texas

If I write 'full and final payment' in the memo line of a money order used to make a one-time lump sum payment to settle a debt, is that a breach of the confidentiality clause that says, 'both parties agree to keep the terms of this settlement agreement confidential'?

Is this the payment to party with whom you have the agreement and is this payment the agreed upon amount? If the answers to those questions are yes then writing what you propose on the check adds nothing for you and you might as well leave that off. While it is unlikely that simple statement on the check would break the confidentiality agreement, I don't have all the details of the agreement and thus can't say for sure if the other party might see a problem with it.

 

[quincy]

Make sure you get a dated and signed receipt for the payment.

 

[CLMoses]

Yes, it’s to the party with whom I have the agreement. Unfortunately, I had already written ‘full and final payment’ in the memo line and then wondered if it would breach the confidentiality clause. I assume that since it does not actually state the terms, i.e. xxx dollars to satisfy xxx dollars. Then it isn’t really a breach the clause that says ‘both parties agree to keep the terms of the agreement confidential’. I did send the other parties attorney an email asking the question, but expect he will say “I’m not your attorney and cannot give you advice”, or something similar. I can always mark it out if that will not create an issue with them being able to deposit the USPS Money Order.

 

[quincy]

Yes, it’s to the party with whom I have the agreement. Unfortunately, I had already written ‘full and final payment’ in the memo line and then wondered if it would breach the confidentiality clause. I assume that since it does not actually state the terms, i.e. xxx dollars to satisfy xxx dollars. Then it isn’t really a breach the clause that says ‘both parties agree to keep the terms of the agreement confidential’. I did send the other parties attorney an email asking the question, but expect he will say “I’m not your attorney and cannot give you advice”, or something similar. I can always mark it out if that will not create an issue with them being able to deposit the USPS Money Order.

I doubt it will be an issue since the money order is going to the other party in the agreement.

 

[CLMoses]

The clause mentions not releasing the terms of the agreement to third parties, so would the plaintiffs bank or the money order issuer be considered releasing the terms to third parties?

 

[CLMoses]

Also, can you mark (black out) something in the memo line of a money order and would it still be negotiable?

 

[Taxing Matters]

The clause mentions not releasing the terms of the agreement to third parties, so would the plaintiffs bank or the money order issuer be considered releasing the terms to third parties?

It's unlikely that the bank or issuer will even read the memo line. Checks and money orders are processed almost entirely by machine, and the machines don't do anything with the memo line.

 

[quincy]

Also, can you mark (black out) something in the memo line of a money order and would it still be negotiable?

I wouldn’t worry about blacking anything out. I am sure the other party will be content to just have the settlement amount paid in full.