Free general release of claims template (Word)

RELEASE AGREEMENT

This Release Agreement is made on [Agreement date] between [Releasing party name], [Releasing party address] ("[Releasing party short name]"), and [Released party name], [Released party address] ("[Released party short name]").

1. Background

A dispute has arisen between the parties about [Dispute description] (the "Dispute"). The parties want to settle it on the terms below.

2. Settlement

[Released party short name] will pay [Releasing party short name] [Settlement amount] by [Payment due date], by [How paid].In exchange for the release below, [Releasing party short name] receives the following: [Exchange details]

3. Release

In exchange for that paymentthe above, [Releasing party short name], for itself and its heirs, successors and assigns, releases [Released party short name] and its owners, officers, employees, agents, successors and assigns from all claims, demands and causes of action of any kind, known or unknown, that [Releasing party short name] has or may have against them up to the date of this Agreement, including claims arising from the Disputeall claims, demands and causes of action, known or unknown, that [Releasing party short name] has or may have against them arising from or related to the Dispute.

[Released party short name] gives [Releasing party short name] the same release, on the same terms and with the same scope, in exchange for the promises in this Agreement.

Each party giving a release understands that it may later discover facts or claims it does not know about now, and intends the release to cover them anyway. To the extent the law allows, it waives the benefit of any law that limits a release to known claims, including section 1542 of the California Civil Code, which says: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

The release does not cover the obligations in this Agreement, or any claim that the law does not allow to be released.

4. No admission

This Agreement is a compromise. Nothing in it is an admission of liability or wrongdoing by any party.

5. No other claims

[Releasing party short name] confirms that it has not transferred any released claim to anyone else and has not started any claim, complaint or lawsuit about a released claim, other than [Pending case details], which it will withdraw or dismiss with prejudice within [Dismissal days] days after receiving the paymentboth parties sign this Agreement.

6. General

The parties will keep the terms of this Agreement confidential, except as needed to enforce it, as required by law, or when speaking to their own legal, tax or financial advisers. Each party has had the chance to take independent legal advice and signs this Agreement voluntarily. This Agreement is the entire agreement about the Dispute and replaces any earlier agreement about it. Any change must be in writing and signed by both parties. If any part cannot be enforced, the rest remains in effect. This Agreement is governed by the laws of [Governing law].

[Releasing party name]: ____________________________ [Releasing party signatory] Date: ______________

[Released party name]: ____________________________ [Released party signatory] Date: ______________