A COT 3 is a form that the ACAS Conciliator uses to record the terms of a negotiated settlement agreed after successful conciliation. The COT 3 is not a legal requirement since an oral agreement reached following ACAS conciliation is binding, provided it satisfies the legal formalities of a contract. Where ACAS has not conciliated, any settlement of statutory claims must adhere to the formalities of a settlement agreement. See also; ACAS Conciliation Flowchart Letter before claim Termination negotiations Without prejudice communications and discussions Without prejudice subject to costs offers and the Employment Tribunal How to Complete the Employment Tribunal Claim form (ET1)