Updated February 13, 2024
A mutual release agreement is a legal document that acts as a resolution between two parties involved in a dispute. It is a common option when making an agreement to settle claims made against one another outside of the court process.
Once signed, both parties are released from claims or liabilities against one another and must keep the details of the agreement confidential.
By Type (3)
 General (settlement of claims) – To settle and release 2 parties engaged in a disagreement.
Download: PDF, MS Word, OpenDocument |
 Employment (Separation) Mutual Release – To release the employer and employee from a working relationship.
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 Real Estate Mutual Release – To release both a buyer and seller from a purchase agreement.
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Table of Contents |
What to Include (5)
- Parties’ Information: Details of the parties involved, usually described as a “plaintiff” and “defendant.”;
- Dispute Description: A description of the dispute should be in mentioned with specific details;
- Settlement Amount: An amount, commonly cash ($), is agreed to be paid by the Defendant to settle the matter. If no payment is agreed to, both parties can release each other as the settlement (consideration);
- Confidentiality: Or known as a “non-disclosure agreement,” requires both parties to keep the terms of the agreement confidential;
- Non-Admission of Liability: In the event a mutual release becomes unwound, non-admission allows both parties to acknowledge no side is guilty of wrongdoing.
“Mutual Release” Clause
Mutual Release. By signing this Agreement, both Parties acknowledge and understand its terms and mutually agree to irrevocably release and forever discharge each other, as well as their respective affiliates, successors, heirs, assigns, directors, officers, employees, agents, and representatives, from any claims, demands, actions, liabilities, costs, and expenses, whether known or unknown, past, present, or future, arising directly or indirectly from any dealings, actions, or agreements specified herein.
Sample
MUTUAL RELEASE AND SETTLEMENT OF CLAIMS
1. THE PARTIES. This Mutual Release and Settlement of Claims Agreement (“Agreement”) is made on [DATE] between:
Plaintiff: [PLAINTIFF’S NAME] with a mailing address of [PLAINTIFF’S ADDRESS], (“Plaintiff”) and
Defendant: [DEFENDANT’S NAME] with a mailing address of [DEFENDANT’S ADDRESS] (“Defendant”).
The Plaintiff and the Defendant are each referred to as a “Party” and, collectively, as the “Parties” and agree as follows:
2. DISPUTE. It is recognized under this Agreement that the Parties are in a dispute that is described as: [DISPUTE DESCRIPTION]
Hereinafter known as the “Dispute.”
3. SETTLEMENT. It is the intention of both Parties to settle the aforementioned Dispute in the following manner: (check one)
☐ – No Payment (mutual release). Both Parties shall give each other a mutual release, which acts as consideration to settle the Dispute.
☐ – One-Time Payment. $[AMOUNT] payment shall be made by the Defendant to the Plaintiff within [#] day(s) after the execution of this Agreement to settle the Dispute.
☐ – Other: [DESCRIBE]
4. RELEASE OF CLAIMS. Each Party hereby releases and forever discharges the other Party and its agents, employees, officers, directors, successors, and assigns from any and all actions, causes of action, claims, demands, damages, costs, expenses, and compensation whatsoever, known and unknown, that each Party each had, now has, or hereafter can, shall, or may have against the other Party, arising out of or in any way related to the aforementioned Dispute.
5. CONFIDENTIALITY. The Parties agree to keep the terms and conditions of this Agreement and the fact of its execution confidential, except as may be necessary to enforce it or as required by law.
6. NO ADMISSION OF LIABILITY. It is agreed to by both Parties that there is no admission of liability, guilt, wrongdoing, or any other recognition or acknowledgment by any Party.
7. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws located in the State where the Dispute occurred, without giving effect to any choice of law or conflict of law provisions.
8. SEVERABILITY. If any term, clause, or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect.
9. ADDITIONAL TERMS & CONDITIONS. [ADDITIONAL TERMS & CONDITIONS]
10. ENTIRE AGREEMENT. This Agreement contains the entire agreement between the Parties concerning the subject matter mentioned hereof and supersedes all prior agreements and understandings, whether written or oral, concerning the subject matter hereof.
11. AMENDMENT. This Agreement may only be amended in writing and signed by both Parties.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
Plaintiff’s Signature: ____________________________ Date: ____________
Print Name: ____________________________
Defendant’s Signature: ____________________________ Date: ____________
Print Name: ____________________________