What is the test to determine if parties have reached a settlement agreement?

The test to determine if parties have reached a settlement agreement is whether parties have agreed on all essential terms. Determining whether the parties have agreed on all essential terms is separate from determining whether the parties have agreed on a form of release incorporating the essential terms agreed upon. A term requiring furnishing of a release and a consent dismissal is implied when a settlement agreement is reached: see Fieguth v. Acklands Ltd., 1989 CanLII 2744 (B.C.C.A.) at para. 35.

This Court has the discretion to refuse to enforce a settlement agreement only in the following circumstances: there was a limitation on the instructions of counsel for the settling party known to the offering party; there was a misapprehension by counsel for the settling party of their instructions or there are facts which would make it unjust to enforce a settlement agreement; there is evidence of fraud or collusion; or, where there is an issue to be tried as to whether there is such a limitation, misapprehension, fraud or collusion in relation to the settlement agreement: Hawitt v. Campbell, [1983] CanLII 307 (B.C.C.A.) at para. 19.