Form 14D – Terms of Settlement

Jurisdiction: Canada | Ontario

What is a Form 14D – Terms of Settlement?

Form 14D is the Small Claims Court form you use to record a settlement in a court case. It turns the deal you made into a clear, written agreement. It is part of the Superior Court of Justice – Small Claims Court process in Ontario. You can use it after you have started a claim, or at any point before judgment, to document what each side has agreed to do.

The form sets out who will pay, how much, and when. It can cover more than money. You can include return of property, repairs, or other actions. It can also include a release, a default clause, and how the case will end once the terms are met. If you file it with the court, it can be enforced like a court order.

People on both sides use this form. Plaintiffs use it when a defendant agrees to pay, or to do something, to settle the claim. Defendants use it to lock in a payment plan, avoid trial, and manage risk. Businesses, contractors, self‑employed professionals, and consumers use it often. Insurers, collection agencies, and self‑represented litigants also use it.

You use this form when you have reached a deal. That might happen after a settlement conference, right before trial, or after you exchange evidence. It might also happen outside of court, after direct talks or mediation. The form gives your deal structure and teeth. It makes the settlement clear, and it lays out what happens if someone does not follow through.

Typical scenarios include unpaid invoices, loans, or deposits. You might use it to resolve damage to property, a failed project, or a dispute after a tenancy ends. You also use it to settle part of a case. For example, you may agree on the amount but leave costs to a judge later. You can also use it to resolve a counterclaim.

The form is short, but it has big impact. It helps both sides avoid the time, risk, and cost of trial. It creates certainty. It also gives you a simple path to enforce the deal if there is a default, if you include the right terms.

When Would You Use a Form 14D – Terms of Settlement?

You use Form 14D whenever both sides agree to settle a Small Claims Court case. You might settle at the settlement conference. That is often when a deputy judge helps the parties negotiate. If you reach a deal in the room, you can write it up on Form 14D and sign it the same day. You can also settle after the conference, once you have exchanged more documents or expert quotes. Many parties settle right before trial, when risks and costs are clearer. The form works at all of these stages.

You may also use the form after starting enforcement. For example, you might have a judgment, but you and the debtor agree to a payment plan. You can record that plan on Form 14D. You can include a term that suspends enforcement as long as payments are made. This gives the debtor breathing room and gives you a clear default trigger.

As a plaintiff, you use the form to lock in a lump sum or a structured plan. That plan can include dates, amounts, and how payments will be made. You can add a default clause to allow quick judgment or enforcement for the full balance if a payment is missed. As a defendant, you use it to avoid a judgment on your record. You can secure a discount for early payment. You can also resolve the case without admitting liability, if the plaintiff agrees.

Landlords and former tenants sometimes use the form to settle claims for unpaid rent or repairs after a tenancy has ended. Small businesses use it to close a dispute over the quality of services or delivery delays. Contractors and homeowners use it to set a fix‑and‑pay schedule to complete or remedy work. Neighbours use it to resolve damage from trees, fences, or water leaks. Family members use it to settle small loans. The common thread is this: you have a pending Small Claims Court case, and you agree on how to end it.

You also use the form to settle only some defendants’ liabilities. For example, you might settle with one of two defendants. You would set out that the claim is discontinued against the settling defendant on completion. The case can continue against the other defendant. The form can also document that payment by one defendant satisfies the full claim, if that is the deal.

Legal Characteristics of the Form 14D – Terms of Settlement

Form 14D records a binding settlement. At its core, it is a contract between the parties to a court case. It becomes enforceable when both sides agree and sign. If you file it with the court, it has added force. The court can note it on the file. The agreement can be treated as an order. If it includes an enforceable default term, you can act on it if the other side fails to comply.

Why is it binding? There is consideration. Each party gives up the right to keep litigating. The plaintiff may accept less than the claim, or time to pay. The defendant agrees to pay or do something they were not otherwise required to do at that moment. There is clarity and certainty. The terms are set out in writing. There is intention to be bound. The parties sign and date it. These are the basic elements of a contract.

Enforceability depends on clarity and proper form. The names of the parties must match the court file. The court file number and court location should be correct. The terms must be specific. Amounts, dates, methods of payment, and conditions must be precise. Avoid vague promises. A strong settlement includes a default clause. It states what happens if a payment is missed or a term is not met. Often, the parties agree that if a default occurs, the plaintiff may obtain judgment or enforce for the full balance without further notice, less amounts paid. If you include this, enforcement is faster and simpler.

There are important legal considerations. Stay within the Small Claims Court’s scope. The court deals with money and personal property up to its monetary limit. The settlement should not try to impose injunctions or orders the court cannot make. If a term exceeds the court’s powers, it may not be enforceable through the court. If you agree on interest, state the rate and start date. If you do not, standard court interest rules may apply. Include costs and disbursements if they are part of the deal. If you want a release, say so in clear terms. A release can be mutual or one‑way.

Make sure the right people sign. If a party is a corporation, the person signing must have authority. If a party is under a disability, a litigation guardian and court approval may be required. The agreement must be voluntary. Do not pressure or mislead the other side. Coercion or fraud can undermine enforceability. Keep in mind that documents filed with the court are part of the public record. If you need confidentiality, consider how you frame that term. You can agree that the parties will keep the terms confidential between them, except as needed to enforce. But once filed, court documents are generally accessible.

Finally, decide how the court case will conclude. The settlement can say that the claim is stayed, dismissed, or discontinued once the terms are met. Many settlements stay the case until full payment. On completion, the plaintiff agrees to file a notice to end the case. If there is default, the plaintiff can seek judgment under the default clause. Make this path clear so no one has to guess.

How to Fill Out a Form 14D – Terms of Settlement

Follow these steps to complete the form properly and avoid delays.

1) Identify the court and file.

At the top, enter “Superior Court of Justice – Small Claims Court.” Add the court address and the court file number. Use the number on your existing case. Confirm the courthouse location matches your file. Get this right so the clerk can match your settlement to the case.

2) Name the parties exactly as on the claim.

Write the full legal names of the plaintiff(s) and defendant(s). Include business names as they appear in the claim. If a party is a corporation, include the full corporate name. If there are multiple parties, list them all. Consistency avoids confusion later.

3) State that the parties have settled.

The first paragraph should confirm that the parties have agreed to resolve the case. Say that the terms below are complete and final, except as stated. This frames the rest of the document.

4) Set out the payment terms.

Specify the total amount to be paid. State whether it includes costs and interest. If you agree on costs, state the amount. If you agree on interest, state the rate and the start date. If payment is a lump sum, give the exact due date. If payment is a plan, list each installment amount and due date. Use calendar dates, not “in 30 days.” If the amount may change based on a condition, explain the trigger and the new amount.

5) Describe the method of payment.

Say how the defendant will pay. It can be e‑transfer, cheque, money order, or another method. Give the payee name and details needed to pay, such as email or mailing address. If you will use post‑dated cheques, note that and attach them if agreed.

6) Include non‑money terms if any.

If property will be returned, describe it clearly. Include make, model, serial numbers, or unique features. State the return date, place, and time. Say who is responsible for delivery or pickup. If repairs or services will be done, describe the work and deadline. If you agree on a service provider, name them. If there is an inspection, state who will do it and when.

7) Add a default clause.

This is vital. Say what happens if a payment is late or a term is breached. A common clause states that if the defendant fails to pay on time, the plaintiff may seek judgment or enforce for the unpaid balance, less amounts paid, without further notice. You can also agree to a short grace period, such as five days. Be precise about when default occurs and what rights the plaintiff has. If you want the clerk to issue judgment on default, say so in the clause.

8) Choose how the court case will be treated during the payment period.

Options include a stay of the action until completion, or dismissal on consent only after full performance. A stay keeps the file open but paused. That makes default enforcement easier. If you dismiss too early, you may need extra steps to enforce later. Many parties prefer a stay, with a promise to file a notice to end the case when the agreement is fulfilled.

9) Address costs and interest.

Confirm whether the settlement includes costs and disbursements. If it does, say the amount. If it does not, say each party bears its own costs. If you include interest, state the rate, whether it is simple or compound, and the period it applies to. If you want no interest during a payment plan, say that.

10) Add a release.

If the settlement is final, include a release clause. It should say that once the defendant completes the terms, the plaintiff releases the defendant from the claim. If the defendant wants a broader release, include it and define its scope. You can make it mutual if both sides want closure. Keep the language simple: what is released, when the release takes effect, and any exceptions.

11) Add “no admission” if needed.

Many defendants want a clause that the settlement is not an admission of liability. Include this if agreed. It does not change enforceability. It manages reputational and legal risk.

12) Consider security.

If you agree, add security to support payment. That could be a guarantor, a consent to judgment held in escrow, or a posted asset. If you use a guarantor, include their full name and obligation. Make sure they sign.

13) Set service and notice details.

State where notices about the settlement should be sent. Include email and mailing addresses for both sides. If you expect to rely on email, say that email is acceptable service for settlement notices.

14) Attach a schedule if needed.

If the payment plan has many dates, attach a schedule. Title it “Schedule A – Payment Plan” and list each date and amount. Refer to it in the main terms. If property details are long, attach a schedule for that too.

15) State what happens on completion.

Explain the last step. Often, the plaintiff agrees to file a notice to end the case within a set number of days after final payment. If property is part of the deal, tie completion to both payment and return. If a document must be provided, add a deadline for it.

16) Deal with default enforcement mechanics.

If you want fast enforcement, include a term that the plaintiff may file the settlement and an affidavit of default to obtain judgment for the unpaid balance. Say that no further notice is required. Note any credit for amounts paid. If you want the ability to garnish on default, the judgment language should allow it.

17) Review jurisdiction and limits.

Confirm that the settlement stays within Small Claims Court limits. If your total exceeds the court’s limit, adjust it or confirm that the amount includes any reduction. If you want to return property with an alternate value, set that value clearly.

18) Signatures and dates.

Each party must sign and date the form. Print names under the signatures. If a party is a corporation, include the signatory’s title and confirm authority. If there is a guarantor, they must sign as well. You do not need a witness for every case, but it helps avoid disputes about authenticity. If a representative signs, ensure they have written authority and attach it if needed.

19) File and serve the signed form.

File the original signed Form 14D with the Small Claims Court where the case is filed. Bring or submit the correct number of copies. Keep a copy for yourself. Give a copy to the other side. If you are at court, the clerk may place it on the file right away. If you are filing after, follow the court’s filing process. Filing ensures the settlement is on the record.

20) Keep proof of performance.

Keep records of payments, delivery receipts, and email confirmations. If default occurs, you will need to show what was paid and when. If you included a default clause, you can rely on your records to request judgment or enforcement.

A few practical tips help avoid problems. Use dates, not vague periods. Avoid “reasonable efforts” when exact steps are possible. Specify the time of day for deadlines that matter. Example: “Funds must be received by 5:00 p.m. Eastern Time on March 15, 2026.” For payment plans, align due dates with paydays when possible. If the settlement involves a third‑party payor, identify them and their role. Do not include terms that depend on court powers the Small Claims Court does not have. If you need a special order, you may need a judge’s endorsement of the settlement.

If your settlement is conditional, state what happens if the condition fails. For example, “If financing is not approved by April 30, 2026, the settlement is void, and the action continues.” If you settle with only one defendant, say whether the claim continues against others and whether the settling defendant’s payment reduces the exposure of the others.

Finally, write in plain language. Use short sentences. Define key terms once. Keep the layout clean. If a term matters to you, put it in. If a term seems unclear, fix it now. A clear Form 14D protects you. It reduces the chance of future disputes. It lets the court help you enforce the deal if you need it.

Legal Terms You Might Encounter

Settlement means the agreement to resolve the claim without a trial. In this form, the settlement spells out who pays what, by when, and what happens if a party does not follow through.

Plaintiff and defendant identify the sides in the case. Use the same party names exactly as they appear on the court file. This avoids confusion when the clerk reviews your form.

Judgment is a court order that you can enforce. Many Terms of Settlement say that if a party defaults, the other side may request judgment for the unpaid balance without a hearing. If you want that option, state it clearly.

Default means a missed payment or a broken promise in the agreement. Your form should define default and list the consequences. For example, you might state that the full balance becomes due if any instalment is missed.

Stay of proceeding is a pause in the case. Settlements often include a stay while payments are made. If the defendant pays on time, the case may end without a trial. If the defendant defaults, the stay can be lifted so the plaintiff can request judgment.

Costs are out‑of‑pocket expenses of the case. These can include filing fees and service expenses. If you want costs included in your settlement, list the amount or how you will calculate it.

Interest is the extra amount charged on the unpaid balance over time. You can agree on an interest rate in the settlement. If you do not, interest may still apply under court rules, so be clear about the rate and when it starts.

Release describes what claims end when the settlement is completed. A full and final release means neither side can sue for the same issues again. If you want a release, state it in the form or attach it.

Security is something pledged to back up payment, like a post‑dated cheque, a guarantor, or collateral. If you agree on security, describe it in the settlement so you can rely on it if there is a default.

Enforcement is the process to collect after a default or judgment. The Terms of Settlement should say if and how you may seek judgment on default. Clear language here helps the clerk accept your documents and saves time later.

FAQs

Do you have to file the Terms of Settlement with the court?

You do not have to file, but filing helps. When you file a signed settlement on the court file, the court can note a stay of the case. If default occurs, you may request judgment under the terms without a hearing, if your settlement allows it. If you keep it private, you may need extra steps to enforce it.

Do you need to go to court after you sign this form?

Usually not. If both sides sign and you file the form, the case often pauses. If payments are made, the case can end without a trial. You might need to attend only if a dispute arises about the terms or a party asks the court to change the agreement.

Do you need a witness or a commissioner to sign?

No commissioner is required. The form needs signatures from all parties who are bound by the settlement. A witness signature is not mandatory, but it helps confirm who signed and when. If possible, sign in each other’s presence and add the date on every signature line.

Can you include a payment plan in the Terms of Settlement?

Yes. You can set instalments, due dates, and the total balance. State the payment method and where to send funds. Include what happens after a late or missed payment. Be precise. For example, “Payments of $200 on the 1st of each month starting May 1, 2025, by e‑transfer to [email].”

What happens if a payment is late by only a day?

It depends on what your settlement says. If you want a grace period, add it. Without a grace period, a one‑day delay can be a default. If default happens, follow the steps in your settlement for requesting judgment, including proving the missed payment and the amount still owed.

Can you change the settlement after it is signed?

Only if everyone agrees in writing. Put any change in a signed addendum and file it so the court file matches your new agreement. Do not rely on a verbal promise. If you change payment dates or the total, update the default and enforcement sections too.

Do you need to include interest and costs in the settlement?

You should. If you want interest, state the rate, start date, and how you will calculate it. If you want costs, list the amount or method. If you leave these out, you may not recover them later. Write the numbers clearly so the clerk can confirm the total if default occurs.

Does this form cover a counterclaim as well?

It can. If the defendant filed a counterclaim, your settlement should deal with both the claim and the counterclaim. State whether each is stayed, dismissed, or resolved on completion. If you do not address the counterclaim, it may continue.

Checklist: Before, During, and After

Before signing: Information and documents you need

• Court details: exact court name, court address, and file number.
• Party names and capacities: use the court file spelling and order.
• Contact information: mailing and email addresses for service.
• The settlement amount: principal, interest, and costs.
• Payment plan: due dates, amounts, and method (e‑transfer, cheque, etc.).
• Default terms: triggers, grace period (if any), and what happens next.
• Enforcement terms: authority to request judgment on default.
• Release language: full and final release or limited release.
• Non‑money terms: return of property, repairs, or actions with dates.
• Security details: post‑dated cheques, guarantor info, or collateral.
• Proof of payments made: receipts for any partial payments already made.
• Any related claims: confirm how you will handle a counterclaim.
• Identification: photo ID for in‑person signing and witnessing, if used.
• Calendar dates: avoid weekends or holidays for due dates, if that helps.

During signing: Sections to verify

• Correct court file number and court location.
• Exact spelling of party names and roles.
• Clear total owing and what the total includes.
• Payment instructions: where, how, and to whom.
• Due dates: format as day‑month‑year to avoid confusion.
• Interest rate and start date, or state “no interest.”
• Costs: specific dollar amounts or clear method of calculation.
• Default clause: what triggers default, grace period, and consequence.
• Enforcement permission: authority to request judgment if default occurs.
• Release clause: scope of claims released and when the release takes effect.
• Stay or dismissal: whether the case is stayed now and how it ends.
• Signatures: every party signs and dates; add printed names under signatures.
• Initial any handwritten changes on every copy.
• Number of pages: show “Page X of Y” and attach schedules if used.
• Keep one “clean” copy for filing with no stray marks or staples removed.

After signing: Filing, notifying, and storing

• File the signed Terms of Settlement with the same court where the case is open. Pay any filing fee.
• Ask the clerk to endorse or stamp your copy. Keep the stamped copy safe.
• Serve a filed copy on every party. Use the same service method you have used in the case.
• Record due dates on your calendar. Set reminders a week before each instalment.
• Track every payment. Save confirmations, deposit slips, and e‑transfer receipts.
• If all terms are completed, file the document that ends the case, such as a consent dismissal or notice that the claim is withdrawn, as the terms require.
• If default occurs, gather proof (the signed settlement, your payment log, bank records). Follow the default process set out in your settlement to request judgment.
• Store all documents for your records. Keep them for several years after the case ends.

Common Mistakes to Avoid

• Leaving out the default consequence. Don’t forget to state what happens after a missed payment. Without this, the clerk may not grant judgment on default.
• Using vague payment terms. Don’t say “pay monthly” without dates and amounts. Vague terms cause disputes and delay enforcement.
• Ignoring interest and costs. Don’t assume you can add them later. If you want them, include the numbers now.
• Forgetting the counterclaim. Don’t settle the claim and leave the counterclaim open by accident. Say clearly what happens to both.
• Not filing the settlement. Don’t skip filing if you want the court’s help on default. A private settlement may require extra steps to enforce.

Consequences can include refusal of your filing, loss of interest or costs, delayed enforcement, and extra court visits. A few minutes of careful review avoids months of delay.

What to Do After Filling Out the Form

File the signed form with the court that holds your case. Bring enough copies for stamping. Keep one stamped copy. Give a stamped copy to every other party.

Set clear reminders for each payment date. Confirm how payments will be sent and received. If you use e‑transfer, confirm the email address and security question.

Monitor payments. A simple spreadsheet or payment log works well. Note the date, amount, method, and reference number for each payment.

Handle amendments in writing. If you need to change a date or amount, draft a short addendum. Have everyone sign it. File the addendum so the court record matches your new terms.

If the other side defaults, follow the default section of your settlement. Assemble proof of default. Calculate the unpaid balance, including any agreed interest and costs. Ask the clerk for the next step to request judgment under your terms.

If the settlement is completed, close the case. File the document that ends the proceeding as promised in your settlement. Confirm with the other side that no balance remains. Give receipts or a satisfaction letter if asked.

Distribute final documents. Keep a full set of the settlement, any addenda, stamped copies, payment records, and closing papers. Share copies with your client or business records, if applicable.

Review and update contact details. If parties moved or changed email addresses during the plan, record the new information. This helps if you need to confirm completion later.

Evaluate lessons learned. Note what worked well in your payment plan. Use that language in any future settlements to save time.