What a settlement agreement should cover
- Who is released and which claims, known and unknown
- Payment amount, schedule, and what happens on a missed payment
- Dismissal of any pending case, and whether the court keeps jurisdiction to enforce
- Confidentiality and non-disparagement, within the limits of California law
- Allocation of fees and costs, and tax considerations
Civil Code section 1542
A general release in California does not automatically cover claims a party does not know about. Section 1542 must be expressly waived if the parties intend to release unknown claims. Whether to include that waiver is a business and legal decision.
Enforceability
Code of Civil Procedure section 664.6 allows a court to enter judgment on a settlement if the parties sign a written agreement (or agree orally before the court) and request that the court retain jurisdiction. A stipulated judgment or security can make a payment plan easier to enforce.
Some settlement terms are restricted by statute, for example certain confidentiality provisions in employment and harassment matters.
General information about California law, not legal advice for your situation. Deadlines and outcomes depend on the facts and the documents. Past results do not guarantee or predict a similar outcome.