In an appeal in an anti-trust action, the Seventh Circuit considered whether the settlement negotiations of two parties produced a binding agreement in the absence of a formal, integrated, and signed writing that the parties contemplated. The Seventh Circuit explained that where material terms, defined as terms that either party deems essential, are left open to future negotiations then the initial agreement in principle cannot be binding as an executed contract. The appellate court then went on to conclude that the undisputed facts established that there were pending material terms at the time that the parties “accepted” the framework of a settlement agreement and, as a result, reversed the district court’s summary judgment order in which the trial court concluded that the parties had reached a binding settlement agreement. (EASTERBROOK, concurring and MALDONADO, specially concurring)
Federal 7th Circuit Court
Civil Court
Settlement Agreements