Last Updated February 1, 2024
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What is a Release of Liability?
A Release of Liability, also known as a waiver of liability, 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 in a Release of Liability?
There are typically two parties in a Release of Liability. They are:
- The releasee is the party 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.
When do I use a Release of Liability?
There are a variety of instances where liabilities can take place. As a result, there are several kinds of release forms that 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 an independent contractor 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.
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 applies to simple Loan Agreements and sales 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 specializing in event organization, sports, and riding clubs. They’ll ask participants to sign a waiver to acknowledge the potential risk and that they won’t seek legal action against the organizers.
LawDepot offers an Activity Waiver template which allows you to narrow down the activity you want your waiver to cover.
5. Property damages
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 window from a rock that got caught and flew from their lawn mower. You can sign a release agreeing to give up your right to seek legal action if your neighbour covers the costs of fixing the damage.
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, you may be at fault if someone visits your home and injures themself by slipping on an icy step you haven’t maintained. To avoid being held liable, you could ask your guest to sign a personal injury waiver and offer them compensation.
A personal injury release form 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 province or territory where the release will be 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.
- Signing details, including if the witness will be a third party or a notary.
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 legally binding?
Yes, a Release of Liability is legally binding, assuming it has all the required elements of a valid contract. Every province’s court will consider the enforceability of a release or waiver differently. Some details the court may consider when enforcing a waiver include:
- If the releasor is capable of signing a release. For example, if a minor signs a release, it will be void.
- If one party has committed coercion and/or fraud.
- If compensation (monetary or non-monetary) was exchanged.
- Whether there are applicable, unwaivable legal duties such as those imposed by legislation.
- 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.
Please consult local laws or an attorney to understand how different waivers are enforced in your jurisdiction.
