Mutual Release Of Liability Form

Mutual Release Of Liability Form Template for Germany

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Key Requirements PROMPT example:

"I need a Mutual Release of Liability Form under German law for my construction company and a subcontractor following completion of a commercial building project in Munich, to be executed by March 2025, releasing both parties from any future claims related to the construction work."

Document background

The Mutual Release Of Liability Form is a critical legal instrument used in German business and personal contexts when parties wish to resolve existing disputes or prevent potential future claims. It is particularly relevant in situations involving settlement of disputes, conclusion of business relationships, or risk management in ongoing operations. The document must strictly comply with German Civil Code (BGB) requirements, particularly regarding limitations on liability exclusions and formal execution requirements. This form is commonly used following dispute resolution, project completion, or business transaction closure, where parties seek to achieve final settlement of all claims. The document typically includes detailed descriptions of released matters, specific exceptions required by German law, and appropriate representations and warranties from all parties. It serves as a legally binding agreement that provides certainty and closure while maintaining compliance with mandatory German legal provisions.

Suggested Sections

1. Parties: Identification and details of both parties entering into the mutual release agreement

2. Background: Context of the dispute or circumstances leading to the mutual release

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Losses', and 'Released Matters'

4. Mutual Release: Core provision where each party releases the other from claims and liabilities, with specific reference to German law limitations

5. Scope of Release: Detailed description of what claims and liabilities are covered by the release, including temporal scope

6. Exceptions to Release: Specific exclusions as required by German law, including injuries to life, body, health, and gross negligence

7. Representations and Warranties: Statements by both parties regarding their authority to enter into the agreement and understanding of its terms

8. No Admission of Liability: Statement that the release does not constitute an admission of liability by either party

9. Governing Law: Explicit statement that German law governs the agreement

10. Severability: Provision addressing partial invalidity in accordance with § 139 BGB

11. Entire Agreement: Confirmation that this document represents the complete agreement between the parties

12. Execution: Signature blocks and formal execution requirements under German law

Optional Sections

1. Confidentiality: Optional provisions regarding confidentiality of the release terms and underlying dispute - recommended for sensitive matters

2. Non-Disparagement: Optional mutual agreements not to make negative statements about each other - useful in high-profile or contentious cases

3. Future Cooperation: Optional provisions about how parties will interact in the future - relevant for ongoing business relationships

4. Insurance Matters: Optional section addressing insurance claims and coordination - relevant if insurance is involved in the underlying matter

5. Tax Implications: Optional provisions addressing tax treatment of any payments - relevant if monetary compensation is involved

6. Return of Property: Optional provisions regarding return of documents or property - relevant if physical items or documents need to be exchanged

7. Payment Terms: Optional section detailing any financial settlements - relevant if monetary compensation is part of the release

Suggested Schedules

1. Schedule 1 - Specific Released Claims: Detailed list of specific claims, disputes, or matters being released

2. Schedule 2 - Related Parties: List of affiliated entities, officers, or other parties included in the release

3. Schedule 3 - Excluded Matters: Specific listing of matters excluded from the release

4. Appendix A - Supporting Documents: Copies of relevant documents referenced in the release

5. Appendix B - Form of Public Statement: If applicable, agreed form of any public statements regarding the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

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