General Release of Liability Template

A general release of liability helps to protect a person or business from being sued. While common for risky activities, like skydiving, many other situations can call for these documents. Take a closer look at when and how to create a general release of liability.

What Is a General Release of Liability?

A general release of liability is a contract that involves one party giving up their rights to sue or hold other parties otherwise liable for any injuries or losses as a result of activities mentioned in the document.

When and Why to Use One

These documents are highly useful when resolving conflicts outside of court, such as when one party pays a settlement in exchange for dropping the charges against them. A general release of liability can also be a good option when terminating an employee. You may offer severance in exchange for the employee waiving their right to sue later on.

Business contracts can rely on these documents, too. They can release vendors, suppliers and partners from potential breaches or further obligations.

Perhaps most commonly, a general release of liability is signed before an activity that carries risks. They can protect businesses from lawsuits based on ordinary negligence.

Key Elements to Include

In the same way as you would create an activity waiver and release, you’ll need to offer detailed information on the activities or events that the document covers. Make sure to identify all parties involved.

State the purpose of the document and that the other party waives all current and future claims. Include language that states the releasor fully understands the risks and voluntarily agrees to sign the form.

The document should also have an indemnification clause. This states that the releasor will be liable for all legal costs if they breach the contract. That’s the case even if a third party attempts to sue the releasee on the releasor’s behalf.

Provide information on the governing laws and jurisdictions where any legal issues will be resolved. Include the date and the signatures of all parties.

How to Draft One

To draft the document, begin by naming all involved parties, and include their addresses and contact information. Describe the scope of the document, and detail that the other party knows the risks.

You should then add standard clauses, like indemnification, governing law and entire agreement clauses. Ensure that the release is not buried in a large document, written in small print or in any way hidden.

What It Cannot Waive

A general release of liability cannot usually waive claims that involve gross negligence, recklessness, illegal acts or intentional misconduct.

Common Mistakes to Avoid

A common error is to use ambiguous language or very broad terms. Any hint of coercion can make these documents invalid, but that can also occur if the releasor is not offered genuine compensation post-incident.

Ensure that the releasor has the capacity to sign their rights away. If the person is a minor, is intoxicated or incapacitated, the document will typically be invalid.

Creating the Right Form Matters

Having the right form can safeguard your interests both now and down the line. Find the forms and guides you need for your business from ConsumerShield today.