What Does “Release” Mean in a Contract?
A discharge from obligation or liability, typically giving up the right to sue for existing or potential claims.
Detailed Explanation
A release extinguishes claims - once you sign a release, you can no longer pursue those claims legally. Releases are typically used to settle disputes or finalize transactions, ensuring no future litigation over covered matters.
Releases can be mutual (both parties release each other) or one-sided. They often include "known and unknown" claims language, meaning you release claims you might not even know you have yet.
Example in a Contract
“Employee hereby releases and forever discharges Company from any and all claims, demands, and causes of action arising from Employee's employment, whether known or unknown, up to the date of this Agreement.”
Why It Matters
A release is final - you're permanently giving up claims. Employment releases are particularly common when leaving a job, often in exchange for severance. Make sure the compensation is worth what you're giving up.
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