Release Agreement TemplatePRO PLUS
What Is a Release Agreement?
A release agreement is a waiver that terminates a contract and releases a party from potential liability. This can be done in exchange of compensating the other party with money or some other considerations. Having a release agreement can protect you from lawsuits and can even help you avoid it before it even occurs.
How to Write a Release Agreement?
Small businesses have experienced a lot of complaints from various people. In one statistics, it showed that client complaint and contract dispute (22.2%) ranked highest among the rest of the incidents that may occur in business. This is followed by employee injury (10.6%), and disaster damages (6.6%). But having a well-drafted release agreement may relieve your business from complaining parties.
1. Identify the Parties Involved
There will be parties involved in the argument. Identify each party and hear out every last detail of the issue. The common causes of these problems are personal and roommate issues; unwanted accidents; copyrights and intellectual ownership issues; a conflict between partnerships and employments, as well as late payments on rentals, loans, and leases. Understand each side and supplement the best possible solution to repair the situation.
2. Draft Your Agreement
Offer good compensation to other parties to avoid further conflicts. Have a mutual understanding with your release, and draft a release agreement with them. Consider adding your recitals on the basic agreement, the payment you wish to provide, your severance benefits, and the release of claims. Specify your settlements and separation pays to avoid further lawsuits, and keep your reputation clean.
3. Provide Confidentiality of the Agreement
If you have a big name in the industry, you don’t want this issue to leak outside, especially in the media and to your competitors. Provide clear confidentiality of information to make sure they don’t disclose any information to the public once they sign the agreement. This includes the confinement of any materials, design models, talents, client information and transactions, and the general operation of the system.
4. Add Your Attorney’s Fees
Indicate how the sample agreement shall be governed and interpreted in accordance with the law. Then, add your attorney’s fees on the agreement just in case the other party breaches the said agreement. Once they do, they will be held responsible for the costs of the attorney’s fee incurred by the non-breaching party.
5. Review Your Agreement for Any Errors
Seek for further guidance and have it reviewed by your attorney. Review for errors and adjustments to satisfy each party, and avoid delays on the agreement. Make sure it undergoes the correct and legal processes. Most of all, respect the other party and provide them with proper compensation for the damage cost.
6. Let Both Parties Sign the Agreement
Both parties must sign the agreement. The attorney shall review the entire agreement and seal it to make it official. Once they sign the agreement, you are no longer liable for any legal matters on the situation since both of you already have a mutual agreement on the issue. Finally, this ends your transaction.