Document background
A Mutual Release of Claims is commonly utilized when parties wish to resolve disputes or terminate relationships while preventing future litigation. This document, widely used in U.S. jurisdictions, provides legal protection for all involved parties by clearly defining which claims are being released and ensuring that each party receives adequate consideration. The agreement typically includes specific details about known and unknown claims, consideration, representations and warranties, and may include confidentiality provisions. It's particularly valuable in employment separations, business dissolutions, or settlement of disputes where both parties have potential claims against each other.
