Yes. Many civil disputes in the Philippines can be settled through the Lupon Tagapamayapa under the Katarungang Pambarangay system, but only when the dispute falls within the barangay’s legal authority. This matters because, for covered disputes, you generally cannot go straight to court or another government office for adjudication unless barangay confrontation has first taken place and settlement failed, or the law allows direct filing. The practical question is not simply “Can I file at the barangay?” but “Is my dispute the kind that must first pass through barangay conciliation, and what happens if it settles or fails?”

What Is the Lupon Tagapamayapa?

The Lupon Tagapamayapa is the barangay peace council created under the Local Government Code of 1991, Republic Act No. 7160. Each barangay has a Lupon headed by the Punong Barangay, with members chosen from qualified residents. Its purpose is to help people settle disputes quickly, informally, and locally before those disputes become full court cases.

The process is often called:

Barangay conciliation
Katarungang Pambarangay
Lupon proceedings
Barangay mediation
Barangay settlement

In everyday terms, it is a structured settlement process at the barangay level. It is not a regular court trial. The barangay does not decide ownership, award damages like a judge in a full civil case, or issue a court judgment after hearing evidence—unless the parties voluntarily agree to arbitration. Its usual role is to bring the parties face-to-face and help them reach a written settlement.

The legal basis is found in Sections 399 to 422 of the Local Government Code of 1991, RA 7160, particularly Sections 408 to 418 on coverage, venue, procedure, conciliation, arbitration, settlement, execution, and repudiation. The Supreme Court has also issued Administrative Circular No. 14-93, which guides courts on when prior barangay conciliation is required before a case may proceed. (Supreme Court E-Library)

Can Civil Disputes Be Settled Through the Lupon?

Yes, civil disputes may be settled through the Lupon if the dispute is within the Lupon’s authority under Section 408 of RA 7160.

As a general rule, the Lupon may bring together parties for amicable settlement when:

The parties are individuals, not corporations, partnerships, government agencies, or other juridical entities;
The parties actually reside in the same city or municipality;
The dispute is not one of the legal exceptions;
The dispute is capable of compromise or settlement; and
No urgent legal remedy is needed that would justify going directly to court.

Section 408 gives the Lupon authority over “all disputes” between parties actually residing in the same city or municipality, subject to specific exceptions. Section 412 then makes barangay conciliation a pre-condition before filing a complaint, petition, action, or proceeding in court or another government office for adjudication when the matter is within the Lupon’s authority. (Supreme Court E-Library)

Common Civil Disputes That May Go Through Barangay Conciliation

Civil disputes commonly brought to the barangay include:

Type of civil dispute	Usually covered?	Practical notes
Unpaid personal loan or utang between neighbors	Yes	Very common. Bring chat screenshots, promissory note, receipts, or bank transfer proof.
Damage to property	Yes	Example: a neighbor’s construction damages your wall or drainage. Photos and repair estimates help.
Boundary, fence, access, or right-of-way disputes	Often yes	If real property is involved, venue is usually the barangay where the property or larger portion is located.
Rental or ejectment-related disputes between individual lessor and lessee	Often yes	Demand letters and lease contracts are important. If urgent possession issues exist, court rules may apply.
Unpaid goods or services between individuals	Often yes	Example: unpaid home renovation work, catering, repair services, or online sale between individuals.
Family property disagreements between relatives	Sometimes	Barangay may help settle payment, possession, or sharing arrangements, but cannot finally determine title like a court.
Noise, nuisance, water leakage, pets, trees, or neighborhood disturbance	Often yes	These are practical barangay-level disputes, especially when both parties live nearby.

A useful way to think about it: if the dispute is between private individuals, local in character, and capable of being settled by agreement, barangay conciliation is often the first required step.

Civil Disputes Not Covered by the Lupon

Not every civil dispute can be settled through the Lupon. Some disputes are legally excluded or should be filed directly with the proper court or agency.

Under Section 408 of RA 7160 and Supreme Court Administrative Circular No. 14-93, barangay conciliation does not apply when:

One party is the government, or a government subdivision or instrumentality;
One party is a public officer or employee and the dispute relates to official functions;
The dispute involves real properties located in different cities or municipalities, unless the parties agree to submit it to an appropriate Lupon;
The parties actually reside in barangays of different cities or municipalities, unless the barangays adjoin each other and the parties agree to submit the dispute to the Lupon;
The complaint is by or against a corporation, partnership, homeowners’ association, condominium corporation, lending company, or other juridical entity;
The matter is a labor dispute arising from employer-employee relations;
The dispute arises from agrarian reform laws;
Urgent court action is needed, such as preliminary injunction, attachment, delivery of personal property, or support pendente lite;
The action may be barred by prescription or statute of limitations if the party waits; or
The law places jurisdiction in another body or special procedure. (Supreme Court E-Library)

Important example: corporations and businesses

A private person may file a barangay complaint against another private person. But a corporation, partnership, or juridical entity is not treated the same way. Supreme Court Administrative Circular No. 14-93 specifically states that complaints by or against corporations, partnerships, or juridical entities are excluded because only individuals may be parties in barangay conciliation. (Lawphil)

This matters in real life. For example:

A tenant’s dispute with an individual landlord may be covered.
A buyer’s dispute with a real estate developer is usually not a Lupon matter and may involve the DHSUD, formerly HLURB, depending on the issue.
A borrower’s dispute with a registered lending company is usually not a barangay conciliation case between individuals.
A complaint against a homeowners’ association or condominium corporation is not treated like a neighbor-to-neighbor barangay dispute.

Why Barangay Conciliation Matters Before Filing a Civil Case

For covered disputes, barangay conciliation is not just a polite suggestion. It is a legal pre-condition.

Section 412 of RA 7160 provides that no complaint, petition, action, or proceeding involving a matter within the Lupon’s authority shall be filed directly in court or another government office for adjudication unless there has been confrontation before the Lupon Chairman or Pangkat and no settlement was reached, as certified by the proper barangay official, or unless the settlement was repudiated. (Supreme Court E-Library)

The Supreme Court has repeatedly recognized this requirement. In Lumbuan v. Ronquillo, quoted in Spouses Belvis v. Spouses Erola, the Court explained that the objective of Katarungang Pambarangay is to reduce court litigation and prevent deterioration in the quality of justice caused by indiscriminate court filings. In the same decision, the Court noted that failure to comply with required barangay conciliation makes the complaint vulnerable to dismissal for prematurity, though the defect is not jurisdictional and may be waived if not seasonably raised. (Supreme Court E-Library)

In practical terms, if you file a covered civil case in court without the required Certificate to File Action, the defendant may ask the court to dismiss the case or suspend it and refer the dispute back to the barangay. Supreme Court Administrative Circular No. 14-93 says a premature case may be dismissed not for lack of jurisdiction, but for failure to state a cause of action or prematurity. (Lawphil)

Where Should You File the Barangay Complaint?

Venue is important. Filing in the wrong barangay can delay the process.

Under Section 409 of RA 7160:

Situation	Proper barangay venue
Parties actually reside in the same barangay	Barangay where they both reside
Parties reside in different barangays within the same city or municipality	Barangay where the respondent, or any respondent, actually resides, at the complainant’s choice
Dispute involves real property or an interest in real property	Barangay where the property, or the larger portion of it, is located
Dispute arose at a workplace or school	Barangay where the workplace or institution is located

Objections to venue must be raised during mediation before the Punong Barangay. If a party fails to object at that stage, the objection may be deemed waived. (Supreme Court E-Library)

Step-by-Step Process for Settling a Civil Dispute Through the Lupon

1. Prepare your basic facts and documents

Before going to the barangay, organize the dispute clearly. Barangay proceedings are informal, but preparation matters.

Bring:

Valid government ID;
Proof of address, if residence may be questioned;
Written summary of what happened;
Full name, address, and contact details of the respondent;
Copies of contracts, receipts, promissory notes, demand letters, screenshots, photos, repair estimates, or other evidence;
A sketch or tax declaration if the dispute involves land boundaries or property location;
Authorization documents only when legally allowed, such as for minors or incompetents.

For foreigners, bring a passport, ACR I-Card if available, lease contract, barangay certificate of residence, utility bill, or other proof showing actual residence. Citizenship is not usually the key issue; actual residence and personal appearance are.

2. File the complaint orally or in writing

Section 410 allows an individual with a cause of action against another individual involving a matter within the Lupon’s authority to complain orally or in writing to the Lupon Chairman, upon payment of the appropriate filing fee. (Supreme Court E-Library)

In practice, many barangays use KP Form No. 7 or a similar complaint form. Some barangays will reduce an oral complaint into writing. Ask for the barangay case number and keep a copy or photo of what you filed.

3. The Punong Barangay summons the respondent

After receiving the complaint, the Lupon Chairman must summon the respondent, with notice to the complainant, for mediation. The law requires the chairman to act within the next working day. The first stage is mediation by the Punong Barangay. (Supreme Court E-Library)

In real life, delays often happen because:

The respondent is hard to locate;
Barangay staff serve notices only on certain days;
Parties keep asking to reset;
The Punong Barangay or Lupon secretary is unavailable;
The respondent refuses to receive the summons.

Keep track of hearing dates, reset notices, and attendance. These details matter if you later need a Certificate to File Action.

4. Attend personally

Barangay conciliation requires personal appearance. Section 415 states that parties must appear in person without counsel or representative, except minors and incompetents, who may be assisted by next-of-kin who are not lawyers. (Supreme Court E-Library)

This is one of the most misunderstood rules. A lawyer may help you prepare before the hearing, but lawyers generally do not appear for the parties during Lupon proceedings. A representative with a Special Power of Attorney is also not a substitute for personal appearance in ordinary KP proceedings.

This is especially important for OFWs and foreigners abroad. If a person is not actually residing locally or cannot personally appear, the barangay may not be the right forum, or the case may fall outside the usual KP requirement depending on the facts.

5. Mediation before the Punong Barangay

The Punong Barangay tries to help the parties settle. The goal is not to embarrass anyone or conduct a full trial. The goal is to identify the dispute and see whether the parties can agree on a practical solution.

For example:

“The debtor will pay ₱5,000 every 15th and 30th until fully paid.”
“The neighbor will repair the damaged wall within 30 days.”
“The tenant will vacate by a specific date and pay agreed arrears.”
“The parties will relocate the fence based on a joint survey.”
“The seller will refund the buyer in two installments.”

If mediation fails within 15 days from the first meeting, the Punong Barangay must set a date for constitution of the Pangkat ng Tagapagkasundo, the three-member conciliation panel chosen from the Lupon. (Supreme Court E-Library)

6. Pangkat conciliation

The Pangkat is formed when mediation by the Punong Barangay fails. It must convene not later than three days from its constitution. The Pangkat hears both parties and their witnesses, simplifies the issues, and explores possible settlement. (Supreme Court E-Library)

The Pangkat should arrive at a settlement or resolution within 15 days from the day it convenes. This may be extended for another period not exceeding 15 days, except in clearly meritorious cases. (Supreme Court E-Library)

A common mistake is expecting the barangay to issue a Certificate to File Action immediately after the first failed mediation. Supreme Court Administrative Circular No. 14-93 warns that if mediation before the Punong Barangay fails, or the respondent fails to appear at that stage, the Punong Barangay should not immediately cause the issuance of the certificate. The constitution of the Pangkat is mandatory. (Lawphil)

7. Put any settlement in writing

If the parties settle, Section 411 requires the amicable settlement to be in writing, in a language or dialect known to the parties, signed by them, and attested by the Lupon Chairman or Pangkat Chairman. (Supreme Court E-Library)

A good barangay settlement should be specific. Avoid vague wording like “Respondent promises to pay soon” or “Parties agree to behave.” Instead, include:

Exact amount to be paid;
Due dates;
Mode of payment;
Who will shoulder repair, survey, transfer, or documentation costs;
Exact property, room, unit, or boundary involved;
What happens if a payment date is missed;
Date of turnover, vacating, repair, or delivery;
Signatures of all parties;
Attestation by the proper barangay official.

8. Know the effect of a barangay settlement

A barangay amicable settlement or arbitration award can become very powerful. Under Section 416, it has the force and effect of a final judgment of a court after 10 days from its date, unless it is repudiated or an arbitration award is challenged in the proper city or municipal court. (Supreme Court E-Library)

This is why people should read the settlement carefully before signing. Once the 10-day period passes, the settlement may become enforceable like a final judgment.

9. If the other party violates the settlement, move for execution

Under Section 417, the amicable settlement or arbitration award may be enforced by execution by the Lupon within six months from the date of settlement. After six months, it may be enforced by action in the appropriate city or municipal court. (Supreme Court E-Library)

This means you should not sleep on your rights. If the respondent agreed to pay or perform and then failed, return to the barangay promptly and ask about execution of the settlement. If more than six months have passed, you may need to file the proper court action to enforce it.

10. If settlement fails, secure the proper Certificate to File Action

If no settlement is reached after the required proceedings, the barangay may issue a Certificate to File Action. This certificate tells the court or government office that the required barangay confrontation took place, or that failure of confrontation was not the complainant’s fault, and that settlement failed.

Administrative Circular No. 14-93 states that certification may be issued by the Lupon Secretary or Pangkat Secretary, with proper attestation, depending on what happened in the proceedings. It also cautions courts to examine whether the certificate was properly issued. (Lawphil)

What Happens If the Respondent Refuses to Attend?

If the respondent ignores the barangay summons, the complainant should still attend every scheduled hearing and make sure attendance is recorded. The reason is simple: the certificate must usually show that failure of personal confrontation was not the complainant’s fault.

Do not assume that one missed hearing automatically gives you the right to sue. In many barangays, the respondent will be summoned more than once, and the matter will still proceed to the Pangkat stage if required. The official KP forms commonly include notices for failure to appear and certificates to file action after the proper stage. (lgrcrm.com)

Can the Barangay Force Someone to Pay?

The barangay cannot simply order a person to pay in the same way a court can after trial. The usual power of the Lupon is to help the parties reach a voluntary amicable settlement.

However, once a valid written settlement or arbitration award becomes final under Section 416, it may be enforced. The Lupon may execute it within six months. After that period, enforcement must be pursued in the proper city or municipal court. (Supreme Court E-Library)

So the practical answer is:

Before settlement: the barangay facilitates, mediates, and conciliates.
After a valid settlement becomes final: the agreement can have the force and effect of a final court judgment.
If the agreement is violated: enforcement depends on whether you are still within the six-month Lupon execution period.

Can You Repudiate a Barangay Settlement?

Yes, but only on limited grounds and within a short period.

Under Section 418, a party may repudiate the settlement within 10 days from the date of settlement by filing a sworn statement with the Lupon Chairman if consent was vitiated by fraud, violence, or intimidation. The Punong Barangay and Pangkat members are authorized to administer oaths in KP proceedings under Section 420. (Supreme Court E-Library)

This means you cannot repudiate just because you changed your mind or later realized you could have negotiated a better deal. The law specifically refers to serious defects in consent.

Civil Disputes Involving Land, Possession, or Boundaries

Land disputes often go to the barangay first, but this area needs care.

The Lupon may help settle practical issues involving land, such as:

Boundary misunderstandings;
Fence placement;
Informal possession by relatives;
Road access or right-of-way issues;
Damage caused by construction;
Agreements to vacate;
Payment for use or occupation.

But the barangay should not be treated as a substitute for a court or the Register of Deeds. It cannot cancel a Torrens title, decide a complex ownership case with finality, partition inherited property, or correct land registration records.

For real property disputes, Section 409 provides that venue is the barangay where the property, or the larger portion of it, is located. But Section 408 excludes disputes involving real properties located in different cities or municipalities unless the parties agree to submit the dispute to an appropriate Lupon. (Supreme Court E-Library)

Civil Disputes Involving Family Members

Barangay conciliation is common among relatives because many disputes involve inheritance expectations, possession of family homes, unpaid loans, or care arrangements for elderly parents.

Examples that may be suitable for barangay settlement include:

A sibling occupying a family property and refusing to contribute to expenses;
A relative who borrowed money and failed to pay;
A family member who damaged property;
A dispute over who will shoulder utilities, repairs, or real property tax;
A temporary agreement on use of a room, vehicle, or small business asset.

But be careful with disputes involving abuse, custody, support, protection orders, legal separation, annulment, nullity of marriage, or recognition of foreign divorce. Those matters may require court proceedings or special remedies under the Family Code, the Rules of Court, or special laws.

For example, actions coupled with support pendente lite are specifically listed among matters where direct court action may be allowed under Section 412. Cases involving violence against women and children require protective mechanisms under RA 9262, including barangay and court protection orders, and should not be reduced to a simple “areglo” when safety is at stake. (Supreme Court E-Library)

Civil Disputes Involving Foreigners

Foreigners can be involved in barangay conciliation when the dispute is between individuals and the residence and venue requirements are met. The law focuses on actual residence and the nature of the parties, not merely citizenship.

Common examples include:

A foreign tenant and an individual Filipino landlord living in the same city;
A foreign resident in a subdivision with a dispute against a neighbor;
A foreigner who lent money personally to a local resident;
A dispute over repairs, deposits, or personal property.

Practical points for foreigners:

Bring passport and local residence proof.
If documents are in another language, bring a clear English translation.
If a document was executed abroad and later needed in court, apostille or consular authentication may become relevant.
A Special Power of Attorney usually does not replace the personal appearance requirement in barangay conciliation.
If the dispute involves land ownership, remember that the Philippine Constitution generally restricts private land ownership by foreigners, although foreigners may have other lawful interests such as condominium ownership within legal limits, lease rights, inheritance in limited cases, or contractual claims.

Documents Commonly Needed for Barangay Conciliation

Document or item	Why it matters
Valid ID	Confirms identity of the complainant and respondent.
Proof of residence	Helps establish whether the Lupon has authority and whether venue is proper.
Written complaint or KP form	Identifies the parties, claim, and relief requested.
Demand letter	Useful in debt, rent, ejectment-related, and payment disputes.
Contract, promissory note, invoice, or receipt	Shows the obligation being claimed.
Screenshots or messages	Useful for online loans, marketplace sales, admissions, or payment promises.
Photos or videos	Useful for property damage, nuisance, drainage, fencing, or construction disputes.
Barangay blotter or incident report	Helpful background, though not a substitute for evidence.
Sketch, tax declaration, title copy, or survey plan	Useful for boundary or possession disputes.
Repair estimate or quotation	Helps quantify damages.
Attendance records and notices	Important if the respondent refuses to appear.
Certificate to File Action	Needed before filing covered disputes in court or a government office for adjudication.
Amicable settlement or arbitration award	Needed for enforcement if the other party violates the agreement.

Typical Timeline

Stage	Legal or practical timeline
Filing of complaint	Same day, if barangay staff are available
Summons by Lupon Chairman	Law says within the next working day after receipt of complaint
Mediation by Punong Barangay	If unsuccessful within 15 days from first meeting, Pangkat should be constituted
Pangkat convening	Not later than 3 days from constitution
Pangkat settlement period	15 days from convening, extendible for another period not exceeding 15 days except in clearly meritorious cases
Suspension of prescription	Interrupted upon filing with the Punong Barangay, but interruption cannot exceed 60 days
Repudiation of settlement	Within 10 days from date of settlement
Lupon execution of settlement	Within 6 months from date of settlement
Court action to enforce settlement	After the 6-month Lupon execution period

These are legal timelines, but actual barangay practice can vary. Busy urban barangays, service issues, repeated absences, and incomplete records can cause delays. Section 410 expressly provides the working-day summons, 15-day mediation period, Pangkat process, and 60-day limit on interruption of prescription. (Supreme Court E-Library)

Practical Tips Before Signing a Barangay Settlement

A barangay settlement can have the effect of a final court judgment, so it should be written carefully.

Before signing, check that the settlement states:

The complete names of the parties;
The exact obligation;
The amount, if money is involved;
The payment schedule;
The property or item involved;
The date and place of performance;
What happens if the other party defaults;
Whether the agreement is full settlement or partial settlement only;
Who pays costs, repairs, transfer expenses, or documentation expenses;
Signatures of all parties;
Attestation by the proper Lupon or Pangkat officer.

Avoid signing a blank, incomplete, or vague form. Do not rely on verbal promises that are not written in the settlement.

Common Mistakes That Cause Problems Later

Filing in court too early

If the dispute is covered by Katarungang Pambarangay and you file directly in court without proper barangay proceedings, the case may be dismissed for prematurity or referred back to the barangay. (Lawphil)

Getting the wrong certificate

A certificate issued too early may be questioned. If mediation before the Punong Barangay fails, the Pangkat stage is generally required before a proper Certificate to File Action is issued. (Lawphil)

Sending only a representative

The law requires personal appearance, except for minors and incompetents assisted by next-of-kin who are not lawyers. (Supreme Court E-Library)

Treating the barangay like a court

The Lupon is not there to conduct a full-blown trial. If the dispute requires cancellation of title, annulment of contract, judicial partition, injunction, attachment, or other formal remedies, court or agency proceedings may be necessary.

Signing a vague settlement

A settlement that says “pay when able” or “fix the issue soon” is hard to enforce. The more specific the agreement, the easier it is to implement.

Waiting too long after breach

If the other party violates the settlement, execution by the Lupon is available only within six months from the settlement. After that, enforcement must be through the proper city or municipal court. (Supreme Court E-Library)

Frequently Asked Questions

Can I file a civil case in court without going to the barangay first?

Only if the dispute is not covered by the Lupon’s authority or falls under an exception. For covered disputes, Section 412 of RA 7160 requires prior barangay confrontation and failed settlement, certified by the proper barangay official, before filing in court or another government office for adjudication. (Supreme Court E-Library)

What is a Certificate to File Action?

A Certificate to File Action is the barangay document showing that the required conciliation process failed, or that settlement was repudiated, so the complainant may proceed to court or the proper government office. Courts check whether the certificate was properly issued, especially whether the required confrontation or Pangkat stage took place. (Lawphil)

Is a barangay settlement legally binding?

Yes, if it is valid and not timely repudiated. Under Section 416 of RA 7160, an amicable settlement or arbitration award has the force and effect of a final judgment of a court after 10 days from its date, unless repudiation is made or the arbitration award is challenged in the proper court. (Supreme Court E-Library)

Can I bring a lawyer to barangay conciliation?

You may consult a lawyer before or after the hearing, but the parties must personally appear without counsel or representative in Katarungang Pambarangay proceedings. The exception is for minors and incompetents, who may be assisted by next-of-kin who are not lawyers. (Supreme Court E-Library)

What if the respondent does not attend barangay hearings?

Continue attending and make sure your attendance is recorded. If the respondent’s absence prevents confrontation through no fault of the complainant, the proper barangay official may later issue a Certificate to File Action after the required process. A certificate should not normally be issued immediately after only the Punong Barangay’s failed mediation stage because the Pangkat process is mandatory. (Lawphil)

Can the Lupon decide who owns land?

No, not in the way a court can. The Lupon may help parties settle practical land-related disputes, but it cannot cancel titles, conclusively determine ownership, partition an estate, or correct land registration records. Those matters generally require court, Register of Deeds, DAR, DHSUD, or other agency processes depending on the issue.

Can a foreigner use barangay conciliation?

Yes, if the foreigner is an individual, actually resides in the relevant locality, can personally appear, and the dispute falls within the Lupon’s authority. The issue is usually residence and the nature of the dispute, not citizenship alone.

Are labor disputes handled by the Lupon?

No. Labor disputes arising from employer-employee relations are excluded. Supreme Court Administrative Circular No. 14-93 identifies labor disputes as outside barangay conciliation because labor law gives jurisdiction to the proper labor offices and tribunals. (Lawphil)

What if the dispute is urgent?

If urgent legal action is needed, such as preliminary injunction, attachment, delivery of personal property, support pendente lite, habeas corpus, or an action that may be barred by limitations, the parties may go directly to court under Section 412. (Supreme Court E-Library)

Can the barangay settlement be enforced after the other party breaks it?

Yes. Within six months from the settlement, enforcement may be through execution by the Lupon. After six months, enforcement must be through an action in the appropriate city or municipal court. (Supreme Court E-Library)

Key Takeaways

Civil disputes can be settled through the Lupon Tagapamayapa when they fall within the authority of Katarungang Pambarangay under RA 7160.
For covered disputes, barangay conciliation is generally required before filing in court or another government office for adjudication.
The parties must usually be individuals who actually reside in the same city or municipality, subject to venue rules and exceptions.
Disputes involving government entities, public officers acting officially, corporations, labor disputes, agrarian disputes, urgent remedies, and certain real property or residence situations are not ordinary Lupon matters.
Parties must personally appear; lawyers and representatives generally do not appear in the barangay proceedings.
If mediation before the Punong Barangay fails, the Pangkat stage is generally required before a proper Certificate to File Action is issued.
A written barangay settlement can have the force and effect of a final court judgment after 10 days if not validly repudiated.
A settlement may be executed by the Lupon within six months; after that, enforcement must be filed in the proper court.
The best barangay settlements are specific, written clearly, signed by the parties, and realistic enough to be performed.