What is a Release of Liability form?
A Release of Liability is an agreement between two parties in which one gives up the right to hold the other legally responsible for current or future injuries, losses, and damages.
The party waiving their right receives monetary or non-monetary compensation, also known as consideration. Without some form of consideration, a Release of Liability isn't a valid contract.
If both parties agree to waive the right to hold each other legally responsible for injuries, losses, and damages, it is a mutual release agreement.
A Release of Liability Form is also known as a:
- Liability waiver form
- Release of liability waiver
- Release agreement
- Waiver and release of liability
- Liability release form
Releasor and releasee explained
The releasor is the party who agrees not to sue. They receive money or other consideration in exchange for abandoning their right to make a claim. Either party can be an individual or a corporation.
The releasee is the potentially liable party. They provide something of value in exchange for releasing them from liability for any injuries, losses, or damages.
Waiver vs Release of Liability
A waiver and a Release of Liability are similar agreements that help limit legal responsibility, but they serve slightly different purposes and apply at different times.
A waiver is an agreement signed before participating in an activity, where a person voluntarily gives up the right to make specific claims if they’re injured or suffer a loss during that event.
In contrast, a Release of Liability is generally signed after an incident or dispute has occurred, where one party agrees not to pursue legal action related to that specific event—often in exchange for a settlement or other consideration.
Other key differences between a waiver and a Release of Liability include:
- Purpose: A waiver prevents future claims; a release resolves or prevents legal action over a past or known event.
- Effect: A waiver indicates advance acceptance of certain risks and limits liability for ordinary negligence; a release relinquishes existing or potential claims related to a specific situation.
- Common combination: Many forms use both terms together—“Waiver and Release of Liability”—to cover both pre-activity risks and post-incident settlements in one document.
Why is a Release of Liability form important?
A Release of Liability form sets clear boundaries after an incident or agreement. It limits legal exposure, clarifies responsibilities, and helps prevent future disputes.
Legal and financial protection
A Release of Liability form can reduce the chances of the releasee being sued. By signing it, the releasor relinquishes the right to bring specific claims, which helps reduce potential legal expenses and damages. It also serves as a final resolution tool—once signed, it prevents either party from reopening the same matter in the future.
Clear expectations and risk allocation
This form clearly outlines what event or activity is covered, which risks are being accepted, and which claims are released. That clarity ensures both sides understand their rights and obligations before moving forward. It also confirms that the releasor willingly accepted specific risks or agreed to settle a dispute, creating a stronger defense if issues arise later.
Practical benefits for businesses and individuals
Businesses that operate in higher‑risk environments, such as recreational services or contracting, rely on releases to manage liability and continue operations without ongoing legal uncertainty. Individuals also benefit by using the form to secure agreed-upon compensation or closure after an incident, thereby exchanging the right to sue for finality and peace of mind.
For businesses, consider creating a Risk Management Plan to address and prepare for potential risks ahead of time.
Common uses of a Release of Liability form
Below are some of the most common situations where a Release of Liability form helps protect individuals and businesses from future claims.
After an accident or property damage
When an accident or property damage occurs, a release form can finalize a settlement and prevent further claims.
- Vehicle accidents: The injured party may sign a release after accepting compensation from the at-fault driver or their insurer, confirming they won’t file additional claims related to that incident.
- Property damage: For example, if a neighbor accidentally breaks a window, the affected party may sign a release after being reimbursed for the repairs to legally close the matter.
Before risky events or activities
Businesses and organizations often require participants to sign a release before engaging in activities that carry inherent risks.
- Common examples include gyms, sports leagues, fitness classes, guided tours, and adventure activities.
- These waiver and release forms indicate that participants understand the potential risks and agree not to hold the organizer liable for injuries or losses resulting from ordinary negligence.
For settlements and dispute resolution
A Release of Liability form is frequently used to resolve disputes without going to court.
- In personal injury, employment, or business disputes, a release ensures the claimant agrees not to pursue additional legal action related to the same issue.
- In a mutual release, both parties agree to drop all claims against each other, providing closure and avoiding further legal uncertainty.
Other common use cases
Releases can also simplify resolutions in less formal settings.
- Debt or payment disputes: Creditors may sign a release after accepting a reduced or alternative payment arrangement, ending further collection rights.
- Business and service relationships: Companies and independent contractors often use releases when a project concludes or a service relationship ends to avoid potential legal issues in the future.
- Everyday incidents: Individuals might use simple releases for smaller matters—like reimbursing someone for accidental damage or accepting help with a risky household task—to confirm that no further claims will follow.
Types of Release of Liability forms
Different types of releases can accommodate unique circumstances you may be experiencing. All release forms require at least one party, the releasor, to give up the right to make the specified claims against the releasee.
To fully understand the rights they are giving up, the releasor should take great care in reviewing the release form, regardless of type.
1. General Release of Liability
Unlike the other types of releases, a General Release of Liability does not have one specific use. Therefore, this release form is suitable for a broader range of situations involving injuries, damages, or losses.
A General Release of Liability can be appropriate in any circumstance in which one party could sue another for an action or event that has already taken place. If the other six types of releases do not apply to your specific event or situation, a General Release of Liability may be most applicable.
2. Vehicle Release of Liability
A Vehicle Release of Liability is tailored to the possible civil claims that resulted or could result from a car accident.
When using a vehicle release, the party responsible for the car accident compensates the other affected party. In exchange, the affected party gives up the right to hold the responsible party legally accountable for any current or future injuries, losses, and damages.
For example, suppose you rear-end someone and they agree to settle the dispute out of court. To ensure they do not make any future claims for injuries or damage, you can compensate them and have them sign a vehicle Release of Liability.
If both parties are responsible for the accident, they may agree not to sue one another with a mutual release agreement.
3. Activity Waiver and Release
An Activity Waiver and Release is an agreement in which a participant acknowledges that they understand the risks associated with an activity and agree not to sue the activity provider for any injuries or damages that may occur. Activity providers protect themselves from liability by asking participants to sign a waiver before participating in an activity.
In the case of an Activity Waiver and Release, the consideration for signing the waiver and release is the permission to participate in the activity.
4. Damage to property release
A damage to property release prevents liability and possible civil claims following damage to someone's property.
Suppose a contractor provides a service, such as landscaping, and accidentally damages a client's driveway while performing the work. To avoid future legal issues and eliminate liability, the contractor can compensate their client for the damage and use this release to record their compliance.
5. Debt settlement release
Similar to a Loan Agreement, a debt settlement release document outlines an agreement in which a lender accepts less than the full amount owed to settle a debt. In this arrangement, the lender (releasor) releases the borrower (releasee) from any future liability.
This type of release can also apply to business transactions, such as when a service provider agrees to accept partial payment to resolve a payment dispute and send a receipt to permanently close the matter.
6. Mutual release agreement
When both parties claim that the other is responsible for the injuries or damages they have suffered, they may use a mutual release agreement to relinquish their right to hold the other legally accountable.
When two parties are involved in a motor vehicle accident and wish to avoid involving insurance providers or holding each other liable, they can use a mutual release agreement. Typically, both parties simply release the other from future liability. However, if both parties agree that one is more at fault, that party may be required to provide additional compensation.
7. Personal injury release form
A personal injury release form prevents liability and possible civil claims resulting from an incident that has already occurred and caused an injury to someone.
Suppose someone visits your home, injures themselves, and you are at fault. If you want to avoid liability and your visitor agrees to compensation, you can use a personal injury waiver form to protect yourself. The visitor gives up their right to hold you legally responsible for any costs they may incur due to their injuries.
Activity Waivers are different in that they require someone to waive their rights before an injury occurs. Personal injury release forms are executed after an injury occurs.
Key Components in a Release of Liability form
A well-drafted Release of Liability Form includes several essential parts that make the agreement clear and enforceable. Each section helps define the rights being waived, who’s involved, and how disputes are handled.
- Names of the parties (releasor and releasee): Identifies who is releasing the claim (the releasor) and who is being released from liability (the releasee).
- Description of the event or activity: Explains the specific incident, service, or activity covered by the release. This often includes the date, location, and relevant details about what occurred or is expected to occur.
- Released claims and assumption of risk: Clarifies which legal claims the releasor agrees not to pursue and confirms their understanding of the risks involved. This section limits future lawsuits related to the described event.
- Compensation or consideration: Outlines what the releasor receives in exchange for signing the release—such as a payment, refund, or other agreed benefit. This “consideration” helps make the form legally valid.
- Governing law and jurisdiction: Specifies which state or region’s laws apply and where any legal disputes must be resolved. This ensures clarity and certainty regarding which laws apply in the event of disagreements later.
- Signatures and date: Shows that both parties agree to the terms as of a specific date. The signatures make the release of liability form legally binding and enforceable.
Important considerations for a Release of Liability form
A well-drafted Release of Liability must be clear, fair, and legally enforceable. The following factors help ensure the form protects both parties and withstands legal scrutiny.
- Clear and specific language: Describe the covered activity and identify which risks or claims are released. Avoid vague or overly broad terms that could make the release unenforceable.
- Valid contract elements: Include the parties’ names, the activity or event, signatures, and valid consideration. The release should confirm that signing is voluntary and informed.
- Legal limits and jurisdiction: A release generally can’t waive responsibility for fraud, gross negligence, or intentional acts. Specify the governing law and tailor the form to your jurisdiction and risk level.
- Transparency and understanding: Disclose all significant risks and confirm the signer understands them. Allow time for review or legal advice if needed.
LawDepot’s Release of Liability template helps you create a valid, enforceable document that meets these key legal standards.
How to fill out a Release of Liability form
Here’s a clear, step‑by‑step outline for writing a Release of Liability form with LawDepot’s template:
Step 1. Choose the desired type of release/waiver agreement
Start by selecting the purpose of your form. LawDepot’s Release of Liability covers several scenarios—such as a general release of claims, motor vehicle accident, debt settlement, activity waiver, damage to property, personal injury, or mutual release.
Choosing the right type ensures your questions and final document are tailored to your situation.
Step 2. Select the state governing your release
In the Location section, choose the state where the incident, activity, or dispute occurred (or where you’re located).
The form will automatically adjust to reflect that state’s requirements—for example, “Built for Alabama”—since each jurisdiction has its own rules for releases and waivers.
Step 3. Enter party details
Add details for both parties involved:
- Releasee: the individual or business being freed from liability.
- Releasor: the individual or business giving up their right to bring forward a claim.
Provide each party’s name, address, and specify whether they’re individuals or corporations.
Step 4. Describe the incident or dispute being released
Next, clearly explain what your release is covering. Depending on your need for a form, this could be details of a dispute, activity, accident, debt, or injury.
Use straightforward, factual language to clearly indicate which event or situation the release covers.
Step 5. Set the date of the incident (if known)
State when the event took place using the date field. If you’re unsure of the exact date, select “Unknown.”
Accurate dates help limit the release to that specific event and avoid confusion later on.
Step 6. Specify the compensation and payment method
In the Compensation section, choose whether the releasor will receive monetary or non‑monetary compensation. Please note that creating an activity participation form does not require any compensation, as this form serves as a waiver.
If monetary, enter the amount and indicate the payment method (e.g., cash, certified check, bank transfer, or promissory note).
These details ensure both parties understand the terms of payment.
Step 7. Decide how the release will be witnessed or notarized
Under Signing Details, decide how the release will be validated—either by a notary public or a witness.
Select the option that meets your legal or business requirements, then generate and sign your completed Release of Liability form.
Release of Liability FAQs
