A release is an agreement to give up legal claims or rights against another person or entity.
Why a release matters
A release matters because it can prevent future claims about a dispute, injury, transaction, employment separation, or settlement. The scope of the release determines what claims are covered, who is protected, and whether unknown or future claims are included.
Courts often look closely at release wording when a later dispute arises.
Where a release appears
Releases appear in settlement agreements, severance agreements, liability waivers, personal-injury settlements, business-sale agreements, insurance settlements, and contract disputes.
Practical example
A customer accepts a settlement payment and signs a release giving up claims related to a defective product. The release may bar a later lawsuit over the same issue.
How a release differs from nearby terms
A release differs from a waiver because a release often resolves or gives up claims, while a waiver may give up a contractual right or requirement. It differs from a covenant not to sue because a covenant not to sue promises not to bring a lawsuit, while a release may extinguish the claim itself.
Related terms
Quick knowledge check
Why does the wording of a release matter when a later claim is filed?