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Is "agreed upon between [two parties]" a correct way to say that there were two parties that agreed upon something (that is, there was an agreement between them)?
"Agreed upon by" sounds more natural to me, but then, the "negotiation element" seems to be lost, doesn't it?
You have an elegant solution in your question: the active voice phrasing "the two parties agreed upon [the settlement agreement].” Unless you have a compelling reason to phrase it passively, you already have a winning phrase!
