What is a Settlement Agreement?
A Settlement Agreement is an agreement between two parties to waive a legal claim. When you waive a claim, you agree not to proceed with legal action in exchange for compensation. Simply put, it is a way to settle a dispute out of court.
A liability release can be used to waive a claim for damages that have already occurred, e.g., after a motor vehicle accident. It can also be used to waive any future claims for injuries or damage. For instance, you may be asked to sign a waiver form before participating in any physical or high-risk activity.
Who should use a Settlement Agreement?
The parties involved in the Settlement are:
The releasee: the party who is making a payment in order to be released from a possible claim
The releasor: the party who is receiving money or other consideration in exchange for abandoning their claim
A Settlement Agreement should contain the following information:
Type of liability release
Releasor and releasee names and contact information
Details about the dispute or incident that took place (or in the case of an activity waiver, details about the activity that will be taking place)
Compensation details, including amount and type of compensation
Address
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