A Release of Liability is an agreement in which one party waives their right to make a legal claim against another party in the event of a dispute.

In other words, if damages (such as an accident, injury, etc) arise, the parties in a Release of Liability agree not to pursue a lawsuit but to settle the dispute outside of court (e.g. with monetary compensation or some other practical benefit).

Commonly used Release of Liability forms include a motor vehicle accident release, a personal injury release, activity waiver and release, debt settlement, mutual release, and personal injury release.

There are typically two parties in a Release of Liability:

• The releasee is the party who is freed (i.e. released) from being held responsible for the harm or damage that occurred (or may occur) to the other party in the agreement.
• The releasor is the party who waives their right to pursue legal action, often in exchange for compensation such as a sum of money or a practical benefit like participating in an activity.

In some release types, the releasee and releasor may be referred to in more business-relevant names (e.g. activity provider and participant or lender and borrower, respectively) but the concept is the same. In the case of a mutual release, in which both parties promise to release each other, the parties are referred to as the first and second releasor.

A wide range of potential liabilities can arise from different situations. As a result, several types of release forms exist specifically to address issues that are common to certain situations.

LawDepot provides the following types of liability waiver templates:

A general release of liability is used when one party wishes to relinquish legal claims or complaints against another party in a dispute. This is a broad release and is often used in situations involving contracts (such as between an employer and employee) or minor disputes (like when problems delay an independent contractor from completing a project).

A mutual release is used when both parties accept responsibility for the injuries or damages that they have suffered. Both parties waive their right to take legal action against each other in exchange for compensation. A mutual release is often used in business agreements, like when two business owners enter a partnership.

A motor vehicle accident release is generally used when there is minimal vehicle damage or personal injury after an accident and the parties involved wish to settle the situation without filing a lawsuit (although, insurance companies may still need to be involved). Some insurance companies require you to get their permission before you're able to sign a release, so it's recommended you consult your insurance policy to be sure a Release of Liability does not contradict the terms of your policy.

An activity waiver and release is typically used prior to an event or activity in which there is potential for damage, loss, or injury to occur. For example, many sports clubs and event organizers will ask participants to sign a waiver. By signing a waiver, participants acknowledge the risks involved in the activity and release the activity provider from liabilities.

A property damage release is often used when there is minor damage to someone's personal property (e.g. when a person's fence is damaged after a neighbour crashes their bike into it) and the issue is easily settled with monetary compensation.

A personal injury release is generally used when a person suffers a relatively minor injury. LawDepot's personal injury release may be used for both known and unknown injuries: this means a releasor agrees not to pursue legal action even if an issue develops after the agreement is entered into. For instance, a person might develop an infection weeks after getting cut at work. However, if they signed a release before the infection arose, they wouldn't be able to hold the releasee liable for the infection.

A debt settlement (also known as a debt-accord and satisfaction agreement) is used when a lender accepts less money than what was borrowed as a full settlement for the debt. The parties may decide to settle the debt this way because they cannot agree on the amount owed or the value of goods or services that were provided (e.g. a client might withhold payments from a hired contractor whose work did not fulfill their expectations). In contrast, parties may settle a debt this way even if there is no dispute but the borrower is unable to repay what's owed within a reasonable time.

Generally, a Release of Liability is a legally binding contract in which you waive your right to sue an individual or organization for the injuries, losses, or damages you suffer as a result of their actions.

However, there are instances in which you may still be able to pursue legal action despite signing a release. For instance, you may still be able to sue if you've signed a release but have suffered a human rights violation, such as racial discrimination. Although you waive your right to sue when you sign a release, a fundamental human right is a right you cannot waive. This can only be taken from you by due process of law.

Usually, courts will readily enforce a good-faith waiver entered into by consenting parties. However, to decide what constitutes a good-faith waiver, courts tend to consider a number of factors:

• If the parties fully understood the context of the waiver
• If it appears one party was taken advantage of by the other
• If consideration (money or a practical benefit) was exchanged
• If the waiver is so general that it's effect would be unconscionable (i.e. excessive or beyond reason)
• If the waiver seeks to waive a releasee's duty to exercise due care (e.g. if an unlicensed driver drove a tour bus into a ditch, the tour company could not use the passengers' signed activity waivers as a defense in court)

To understand how different waivers are enforced in your jurisdiction, it's recommended you consult your local laws or an attorney.