Release Letter Agreement
This Letter Agreement is for the purpose of releasing both parties from obligations and liabilities under an agreement, once the main obligations of the agreement have been met. It is not intended to apply in any employment context.
(0 reviews)
Last updated December 20, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Letter Agreement assumes there is an existing agreement between two parties and both wish to release each other from their liabilities and obligations under that agreement. For a one-way release, see the Deed of Release and Waiver.
What's the difference between a release and a waiver?
“Release” and “waiver” can have different meanings. In this precedent, a “release” relieves one party of its obligations and liabilities and a “waiver” occurs when one party gives up its rights to take action or enforce its rights under a contract against the other party. The distinction between a release and a waiver is that the latter is more usually confined to situations where one party is in breach of an obligation. This release should not be confused with a waiver clause, the aim of which is that, if a party fails to take action in respect of a breach, it does not lose its rights to take action in respect of the instant breach or any subsequent breaches. A waiver clause will typically make it clear that any failure or delay in exercising a right under the agreement will not constitute a waiver of that right.
This Deed is not intended to apply in any employment context. For a deed of release applicable to the termination of an employment relationship, see:
The Legal Risk Score of a Release Letter Agreement Template
Our legal team have marked this document as low risk considering:
- There may be risks associated with any obligations, claims, or liabilities not specifically identified or acknowledged in the mutual release clause, which could potentially leave either party exposed to unforeseen responsibilities.
- Once the mutual release is signed, parties may have no recourse to address any claims or issues that arise post-signature related to the original agreement, potentially leaving them without remedy for future related disputes.
- The lack of detailed definitions or clarifications within the clauses may lead to different interpretations of what constitutes "fulfilled obligations," potentially leading to disagreements or conflicts between the parties.
Release Letter Agreement Checklist
Complete your free Release Letter Agreement with our checklist
Verify Mutual Satisfaction:
Ensure that both parties agree that all obligations outlined in the original agreement have been fully met to their satisfaction.
Execute with Proper Formalities:
Sign the release letter agreement on the indicated date lines and consider having the signatures witnessed or notarized if required by local laws or for added legal robustness.
Keep Records:
Retain a copy of the signed document for each party's records to ensure that there is proof of this mutual release should any future disputes or legal questions arise.
Communicate Completion:
Notify any relevant stakeholders or third parties that the agreement and all associated obligations have been formally concluded and released.
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