Last Updated February 15, 2024
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What is a Release of Liability?
A Release of Liability, also known as a liability waiver, is an agreement where one party gives up their right to make a legal claim against the other party. It outlines how the parties will settle a dispute outside of court by one party compensating the other.
LawDepot’s Release of Liability template allows you to create a one-way or mutual release. Mutuality means both parties waive their rights to take legal action against the other.
A Release of Liability is also known as:
- Liability release
- Liability waiver
- Release form
- Release of claims
- Waiver of liability
Who are the parties to a Release of Liability?
There are typically two parties in a Release of Liability. They are:
- The releasee is the party who is freed, or released, from being held responsible for the damage or injury that has or may occur to the other party.
- The releasor is the party who waives their right to pursue legal action. This person will receive a form of compensation. This compensation can be a sum of money or a practical benefit like participating in an activity.
Parties may be businesses, such as a business startup borrowing money from a corporate lender. If any party is a business, the concept is the same as if it were two individuals.
Release of Liability versus liability waiver
The terms for this kind of agreement are interchangeable. Both documents are a contractual agreement where one party releases the other from the right to take legal action.
The difference between the two is that signing a waiver is a precaution before an incident or claim occurs, whereas signing a release takes place before or after a dispute or incident occurs.
When do I use a Release of Liability?
There are a variety of instances when liabilities can take place. As a result, several kinds of release forms exist to address these common incidents and situations. LawDepot’s questionnaire helps you create a release for:
1. General claims
A general claim is used when one party wishes to give up legal claims or complaints against another party. This kind of release is broader as it covers situations like contracts or minor disputes that have already occurred. An example is if there is an independent contractor who delays providing a contracted service. You can sign a release to not pursue legal action in return for the tasks to be completed at a new date. Additionally, you may receive compensation, such as additional services, for the delay.
If LawDepot’s other templates don’t apply to your situation, a general claim will be the most applicable Release of Liability for you to use.
2. Car accidents
A Release of Liability can be used for a vehicle accident where damages or personal injuries have occurred. For example, suppose someone rear-ends another person, and the vehicle has minimal damage. The at-fault party could pay the other party and ask them to sign a release to avoid any future issues.
Insurance companies may still need to be involved or released from liability, as reflected in LawDepot’s questionnaire. Consult your insurance policy to be sure a Release of Liability doesn’t conflict with its terms.
3. Debt settlement
A Release of Liability for debts is also known as a debt-accord and satisfaction agreement. It’s useful when a lender will accept less money than the original loan as a full settlement of the debt. This Release of Liability can apply to simple loan situations or the sale of goods or services.
4. Activity participation
A Release of Liability can be used before an event or activity with potential damages, loss, or injury. Examples are businesses specialising in event organisation and sports clubs that will ask participants to sign a waiver to acknowledge the potential risk and that they will not seek legal action against the organisers.
LawDepot offers an Activity Waiver template which allows you to narrow down the activity you want your waiver to cover.
5. Property damage
A property damage waiver or release is often used when minor damage is done to someone’s personal property. For example, suppose your neighbour accidentally damages your fence when they lose control of their bike. A release can allow you to not hold your neighbour legally responsible if they cover the repair costs.
6. Personal injury
A personal injury release form eliminates liability and possible claims when an incident has already occurred and caused an injury to someone. For example, imagine someone visits your home and injures themselves by tripping over a loose paving stone on your sidewalk that you haven’t repaired. To avoid being held liable, you could ask your visitor to sign a personal injury release and offer them compensation to avoid liability.
A personal injury release differs from an activity waiver as it’s created after an incident occurs, not as a precaution.
7. Mutual claims
A mutual release is when both parties waive their rights to take legal action against the other party. This release is standard for situations where both parties are partially at fault. For example, a service is done incorrectly, and the recipient refuses to pay. Both parties can sign a release and resolve the matter outside of court.
How do I write a Release of Liability?
LawDepot’s questionnaire makes it easy to create your Release of Liability. First, choose the template that matches your waiver needs, then provide:
- Your jurisdiction, meaning the country where the release is being used.
- Releasee and releasor details, which include the name of the individual or business and an address.
- Details of the dispute, like an incident, injury, debt, or activity.
- Details of any compensation, which can be monetary or non-monetary compensation to be provided by the releasee.
Other details specific to the situation may be required in your release, like needing to provide insurance information in a release for a car accident. The Release of Liability template you select will guide you through any further information you need to provide.
Is a Release of Liability enforceable?
Yes, a Release of Liability can usually stand up in court as a binding contract, but there are instances where legal action can still be pursued despite a release being signed. Some details the court may consider when enforcing a waiver include:
- If one party has committed coercion and/or fraud.
- Whether or not compensation was exchanged.
- If the release appears to be excessive or beyond reason. (i.e., unconscionable)
- Whether there are applicable, unwaivable legal duties such as those imposed by legislation. (e.g., due care as per the Unfair Contract Terms Act of 1977)
- And more
A court will consider a signed release in their judgment. However, there is a broad category of rights which legislation states can’t be waived through a Release of Liability. These include human rights legislation and many forms of law designed to protect individuals from larger or more powerful entities.
To understand how different waivers are enforced in your jurisdiction, it's recommended you consult your local laws or a solicitor.
