Short Answer:
Effect
The effect of a settlement agreement and mutual release is to discharge the responsible party of its obligation for causing the accident for an agreed-upon amount which is typically less than what could be obtained by pursuing a lawsuit and a trial. In exchange for making the agreed-up payment, the responsible party, the one who caused the accident and his or her insurance company are released and discharged for all past, present and/or future claims stemming from the transaction forever.
Binding
A settlement agreement and mutual release is typically binding on the personal representatives, heirs and/or successors of both parties meaning that once the dispute is settled, it cannot be revived absent a showing that the agreement is contractually void.
Answered on Mar 19th, 2017 at 5:52 AM