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What is a Release of Liability?
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. While it has various uses, this form is often used for car accidents.
The party waiving their right to sue receives monetary (or non-monetary) compensation, also known as consideration. Without some form of consideration, a Release of Liability isn't a valid contract.
A Release of Liability is also known as a waiver of liability or a liability waiver. If both parties agree to waive the right to hold each other legally responsible for injuries, losses, and damages, it’s a mutual release agreement.
Who are the parties in 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 accept money or other consideration in exchange for abandoning their right to make a legal claim.
Either party can be an individual or a corporation.
What are the different types of liability waivers?
Customise LawDepot’s Release of Liability template to suit your unique situation. Our template has seven variations to accommodate the waiver’s most common uses.
1. General release of liability
This form is a broad release from all possible civil claims resulting from a dispute. You can use a general release whenever an action or event has already taken place. If the other six types of liability waivers don’t apply to you, use this general release of liability.
2. Motor vehicle accident
If you’re involved (or at risk of being involved) in a car accident, you can use this form to surrender the right to sue for any current or future injuries, losses, or damages.
Typically, the person responsible for the accident compensates the other affected person. However, it’s possible for both parties to be at fault. In either case, the parties agree to settle the issue without filing a lawsuit or insurance claim.
3. Activity waiver and release
If people are partaking in a potentially dangerous activity, use this form to review and acknowledge the risks before the event occurs. By signing the waiver, they agree not to take legal action if something were to go wrong. In this case, the signing party’s compensation is the ability to participate in the activity.
4. Damage to personal property
If someone damages a home, apartment, or other personal belongings, use this form to create an agreement for one party to pay for repairs while the other party relinquishes the right to seek further legal remedies.
For example, you might hire a contractor to renovate your home, but they damage your floors and walls when installing an appliance. The contractor might agree to repair the damage and deduct the costs from their initial charges.
5. Debt settlement
Use a debt settlement (i.e., a doctrine of accord and satisfaction) to document a lender’s consent to release a debtor from repaying an entire loan. For instance, if a borrower cannot fully repay a debt, the lender may agree to accept a lesser amount.
It’s important to note that both parties need to follow the settlement for the agreement to be effective. That means, if the borrower can’t meet the terms, the lender could sue for the original debt amount plus other damages.
6. Mutual release
In some cases, both parties may be responsible for causing some harm. Rather than blaming each other and arguing in court, each party accepts some responsibility and gives up their right to legal action.
If one party has a greater fault, they might also agree to provide extra compensation.
7. Personal injury
Unlike an Activity Waiver that people sign before an injury occurs, you can use a personal injury release of liability after someone gets hurt.
For example, a landlord might use this form if they failed to maintain their property and a tenant sustained an injury as a result. The tenant accepts some compensation in exchange for releasing the landlord of any liabilities.
How to write your own Release of Liability
If your situation is uncomplicated, you may not need to hire a lawyer or contact your insurance company to resolve a dispute. Instead, complete our questionnaire to customise the Release of Liability form to suit your needs and reach a settlement on your own.
To complete the form, you’ll need the following information:
- Contact details for the parties involved
- A description of the compensation
- Details of the dispute (include as much info as possible to be clear about the liabilities being released)
Use this template when the parties can agree on a settlement.
Is a Release of Liability legally binding?
Yes, when executed properly, a Release of Liability is a legally binding agreement.
If one party violates the terms of the agreement, it’s possible to use the document as evidence in court. If the terms are valid, a judge may rule to uphold the contract.
Remember that different states and union territories have different regulations. You can customise LawDepot’s Release of Liability template to suit the laws in your selected location. However, your answers may affect the enforceability of the agreement. Contact a lawyer if you’re unsure how the laws apply to your situation.
