Last updated October 10, 2023
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A Release of Liability is an agreement between two parties in which one gives up the right to hold the other legally responsible for current or future injuries, losses, and damages.
The party waiving their right receives monetary or non-monetary compensation, also known as consideration. Without some form of consideration, a Release of Liability isn't a valid contract. Release of Liability forms can have a variety of uses but are often associated with car accidents.
If both parties agree to waive the right to hold each other legally responsible for injuries, losses, and damages, it is a mutual release agreement.
A Release of Liability Form is also known as a:
- Liability waiver form
- Release of liability waiver
- Release agreement
- Waiver and release of liability
- Liability release form
Who are the parties to a Release of Liability?
The releasee is the potentially liable party. They give compensation to remove liability for injuries, losses, or damages.
The releasor is the party who agrees not to sue. They receive money or other consideration in exchange for abandoning their right to make a claim. Either party can be an individual or a corporation.
There are different types of releases that can accommodate unique circumstances you may be experiencing. All release forms require at least one party, the releasor, to give up the right to make the specified claims against the releasee.
To fully understand the rights they are giving up, the releasor should take great care in reviewing the release form, regardless of type.
1. General Release of Liability
Unlike the other types of releases, a General Release of Liability does not have one specific use. Therefore, this release form is appropriate for a larger variety of situations that involve injuries, damages, or losses.
A general Release of Liability can be appropriate in any circumstance in which one party could sue another for an action or event that has already taken place. If the other six types of releases do not apply to your specific event or situation, a general Release of Liability may be most applicable.
2. Vehicle Release of Liability
A Vehicle Release of Liability is tailored to the possible civil claims that resulted or could result from a car accident.
When using a vehicle release, the party responsible for the car accident compensates the other affected party. In exchange, the affected party gives up the right to hold the responsible party legally accountable for any current or future injuries, losses, and damages.
For example, suppose you rear-end someone and they agree to settle the dispute out of court. To ensure they do not make any future claims for injuries or damage, you can compensate them and have them sign a vehicle Release of Liability.
If both parties are responsible for the accident, they may agree not to sue one another with a mutual release agreement.
3. Activity Waiver and Release
An Activity Waiver and Release is an agreement in which a participant agrees they understand the risks of an activity and will not sue the activity provider for any injuries or damages. Activity providers protect themselves from liability by asking participants to sign a waiver before participating in an activity.
In the case of an Activity Waiver and Release, being permitted to participate in the activity is the consideration.
4. Damage to property release
A damage to property release prevents liability and possible civil claims following damage to someone's property.
Suppose a contractor provides a service, such as landscaping, and accidentally damages a client's driveway while working. To avoid future legal issues and eliminate liability, the contractor can compensate their client for the damage and use this release to record their compliance.
5. Debt settlement release
A debt settlement release records the agreement between a lender and borrower that the lender will accept less than they are due as a trade-off for reaching a final settlement. In this case, the lender is the releasor, and the borrower is the releasee.
A debt settlement release can apply to straightforward lending situations. For example, if a borrower cannot pay back a lender fully, the lender may accept less than they are due to settle the debt. A debt settlement release records the lender's consent to the arrangement and ensures that the borrower cannot be held liable in the future.
In addition, you can also use a debt settlement release for disputes involving the sale of goods or the provision of services. For example, suppose a landscaper provides services to a client who is not satisfied with the service. If the client receives an invoice and refuses to pay the full amount, the landscaper may be willing to compromise and accept partial payment to recover some of their costs. A debt settlement release records the landscaper's consent to the arrangement and ensures that they cannot hold the client liable in the future.
6. Mutual release agreement
When both parties claim that each other is to blame for the injuries or damages they have suffered, they may use a mutual release agreement to give up the right to hold the other legally responsible.
When two parties contribute to a motor vehicle accident and want to walk away without involving insurance providers or holding each other liable, they could use a mutual release agreement.
Typically, both parties simply release the other from future liability. However, if both parties agree that one is more at fault, that party may provide extra compensation.
A personal injury release form prevents liability and possible civil claims resulting from an incident that has already occurred and caused an injury to someone.
Suppose someone visits your home, injures themselves, and you are at fault. If you want to avoid liability and your visitor agrees to compensation, you can use a personal injury waiver form to protect yourself. The visitor gives up their right to hold you legally responsible for any costs they may incur due to their injuries.
Activity Waivers are different because they require someone to waive their rights before an injury occurs. Personal injury release forms are executed after an injury occurs.
To ensure your Release of Liability form's validity, it needs to include the following information:
- Each party's name and contact information
- Details about the dispute, incident, injury, debt or activity
- Compensation details, including the amount and type of compensation
Yes, Release of Liability forms can be legally enforceable when executed properly. However, release forms are not guaranteed to be valid and enforceable for every situation.
Your release's enforceability depends on a few factors, including:
- Your state's laws for liability releases
- The exact terms of the Release of Liability
- What caused the injury, loss, or damage
