Release clauses

Authored by the LexisNexis Legal Writer team.

Nature of release

A “release” refers to a party renouncing and discharging its rights and claims against another party, usually in connection with a specified matter. For example, in the context of the settlement of disputes or litigation, it is common for the parties to a settled dispute or litigation to provide mutual releases in relation to the matters the subject of the dispute or litigation.

In many cases, a release will be provided in a standalone release document, such as a formal “deed of release” or “deed of settlement and release”. However, in some situations, a release may be included as a clause in a commercial or business contract to deal with a particular matter.

Releases clauses as substantive clauses

Unlike the boilerplate waiver clauses discussed in Guidance Note: Waiver clauses, a release clause is not a boilerplate clause. It is a substantive commercial clause that can have significant consequences for both the releasing party and the released party. Most notably, a releasing party will generally not be able to pursue any claims or remedies against the released party in relation to the released matters, and the released party will therefore be discharged from liability to the releasing party in relation to those matters.