Release of Liability Agreement

What is a release of liability agreement?

A release of liability agreement, or a release agreement, is a legally binding document where one party agrees to waive their legal claims against another party, typically in exchange for compensation.

A simple release of liability form allows the party to settle the dispute without going to the court. The present template can be used for the following situations:

• car accidents;
• personal injuries;
• contract settlement (e.g., service agreements);
• debt settlement;
• other general claims, etc.

The parties involved in a release of liability agreement are a releasor and a releasee. A releasor is a person who waives their legal claims to the party, while a releasee is a person who is being released from such claims.

How to draft a release waiver agreement?

A well-drafted release waiver agreement shall include a number of key components to be a legally sound document. Below we made a breakdown of the most essential elements every release waiver agreement shall have:

General Information

Every release agreement sample shall include basic information such as:

• full party details (names, addresses, and signatures);
• the date of signing the release agreement; and
• governing law clause.

Type of Release

There are several forms of release that may be used in a release agreement sample:

• one-way or single release contract (i.e., when one party releases the other from all liabilities);
• mutual release agreement (i.e., when both parties release each other from all liabilities).

Depending on the chosen type, the final wording of a release agreement sample shall differ dramatically.

It is also common to release from liability in full for all claims and partially for certain claims only.

Compensation

Despite if it is a one-way release or a mutual release agreement sample, a party that releases another from a liability has a right to compensation.

The law does not define the exact form in which such compensation should be paid. Therefore the parties may select either of the following:

• a monetary or cash compensation;
• compensation with securities or shares;
• compensation with other non-material benefits (e.g., free membership);
• compensation with goods or property.

The exact value of a compensation shall be stated directly in the text of a contract as well.

Confidentiality Clause

A comprehensive agreement releasing from liability may also include a confidentiality clause. This clause helps to prevent either party from disclosing the terms of the settlement to the third parties, including:

• details of the incident;
• details of the compensation;
• other important considerations, if any.

Usually, a contract template to release from a liability does not limit a confidentiality obligation in time.

How to customize an agreement template at Faster Draft?

To personalize your document template, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions online.
3. Select a document’s format—release liability agreement PDF or Word.
4. Make a payment.
5. Download, print, sign and use customized document in seconds.