A Mutual Release form can be used in a variety of different situations where two parties have a dispute or claims against each other and wish to resolve them without going through a legal process. Some examples include:
✔ Business Disputes: Two parties may have a disagreement regarding a contract, payment, or different business matter, and they may use a Mutual Release form to resolve the matter and release one another from further claims or liability.
✔ Settling Lawsuits: In certain cases, the parties may prefer to settle a lawsuit out of court. In that event, a Mutual Release form may be used to release one another from further claims or liability related to the lawsuit claims.
✔ Resolving Personal Disputes: Two parties may have a personal dispute, such as a property dispute, and use a Mutual Release form to settle the issue and release each other from further claims or liability.
✔ Closing a Business or Terminating a Partnership: A Mutual Release may be used by the parties to close a business or conclude a partnership, releasing one another from further claims or liabilities associated with the business or partnership.
✔ End of a Legal Contract: A Mutual Release form may be used by parties to complete a legal contract and discharge each other from further claims or liabilities related to the contract.
MUTUAL RELEASE
This Mutual Release ("Release") is executed this ______ day of ___________________ , 20 _____ , by and between _________________________________ ("Party #1") and _________________________________ ("Party #2").
RECITALS:
WHEREAS, Party 1 holds claims against Party 2 for _________________________________________________ ______________________________________________________________________ (the "Indebtedness"); and
WHEREAS, Party 2 hereby agrees to ____________________________________________________________ _________________________________________________ in return for a release of its Indebtedness to Party 1.
WITNESSETH:
NOW THEREFORE, for and in consideration of the payment of One Dollar ($1.00), and other good and valuable consideration, in hand paid, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Party 1 does hereby release, cancel, forgive and forever discharge Party 2 and each of its predecessors, parent corporations, holding companies, subsidiaries, affiliates, divisions, heirs, successors and assigns, and all of their officers, directors and employees from all actions, claims, demands, damages, obligations, liabilities, controversies and executions, of any kind or nature whatsoever, whether known or unknown, whether suspected or not, which have arisen, or may have arisen, or shall arise by reason of the Indebtedness and/or the guaranty of payment of the Indebtedness as designated and described in the Agreement from the first day of the world, including this day and each day hereafter, and Party 1 does specifically waive any claim or right to assert any cause of action or alleged case of action or claim or demand which has, through oversight or error intentionally or unintentionally or through a mutual mistake, been omitted from this Release.
2. Party 2 does hereby release, cancel, forgive and forever discharge Party 1 and each of his holding companies, subsidiaries, affiliates, divisions, successors, heirs, and assigns in all capacities whatsoever, including without limitation as an officer, director, employee, representative, designee, agent, and shareholder thereof, from all actions, claims, demands, damages, obligations, liabilities, controversies and executions, of any kind or nature whatsoever, whether known or unknown, whether suspected or not, which have arisen, or may have arisen, or shall arise by reason of any matter, cause or thing whatsoever, from the first day of the world, including this day and each day hereafter, and Party 2 does specifically waive any claim or right to assert any cause of action or alleged cause of action or claim or demand which has, through oversight or error, intentionally or unintentionally or through a mutual mistake, been omitted from this Release.
3. The provisions of this Agreement must be read as a whole and are not severable and/or separately enforceable by either party hereto.
IN WITNESS WHEREOF, the undersigned have executed this Release in triplicate originals as of the day, month and year first set forth above.
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Party 1
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Party 2