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Mutual Release Agreement

End disputes or obligations fairly with this Mutual Release Agreement Template.

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Mutual Release Agreement

Mutual Release Agreement Template


This Mutual Release Agreement (“Agreement”) is entered into on [Date], by and between:

Party A: [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]

Party B: [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]

Together referred to as the “Parties.”


1. Purpose

The Parties wish to resolve all claims, disputes, and obligations arising out of [describe contract, transaction, or dispute] and mutually release each other from liability.


2. Consideration

As consideration for this Agreement, the Parties agree to the following:

  • [Payment, settlement, or other terms provided by one or both Parties].

  • Each Party acknowledges that the consideration is fair and sufficient to support this Agreement.


3. Mutual Release

  • Party A hereby releases Party B from all claims, actions, or demands of any kind arising from or related to [subject matter].

  • Party B hereby releases Party A from all claims, actions, or demands of any kind arising from or related to [subject matter].


4. Exclusions

This Agreement does not release claims:

  • That cannot be legally waived.

  • Arising from fraud, willful misconduct, or obligations expressly stated to survive termination.


5. No Admission of Liability

This Agreement does not constitute an admission of fault, liability, or wrongdoing by either Party.


6. Confidentiality

The terms of this Agreement shall remain confidential, except where disclosure is required by law or agreed in writing by both Parties.


7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].


8. Entire Agreement

This Agreement contains the entire understanding of the Parties and supersedes any prior agreements, whether oral or written, related to the subject matter.


9. Execution

This Agreement may be executed in counterparts, each of which shall be deemed an original, and together shall constitute one binding agreement. Electronic signatures shall be valid and binding.


Signatures

Party A: ___________________________ Date: _________
Name/Title: [Full Name, Title]

Party B: ___________________________ Date: _________
Name/Title: [Full Name, Title]

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Mutual Release Agreement

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For quick answers, scroll below to see the FAQ.

MUTUAL RELEASE AGREEMENT FAQ


What is a Mutual Release Agreement?

A Mutual Release Agreement is a legally binding contract in which parties agree to discharge each other from existing or potential claims. It is often used to settle disputes, close out contracts, or prevent future litigation.


Why is a Mutual Release Agreement important?

It provides legal protection by ensuring neither party can pursue further claims related to the matter. This creates a clean break and minimizes the risk of costly or prolonged disputes.


When should you use a Mutual Release Agreement?

Use this agreement when resolving disputes, terminating a business relationship, settling financial obligations, or concluding contracts where both parties wish to avoid future liability.


What should a Mutual Release Agreement include?

It should identify the parties, describe the claims or obligations being released, state mutual consent, specify consideration (such as payment or settlement terms), and include governing law.


Does a release mean parties can never bring any claims?

Yes—except for claims expressly excluded in the agreement, such as fraud or obligations that must legally survive. Clear drafting helps prevent unintended waivers.


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