Document background
A Mutual Release of Claims is commonly used when parties wish to resolve disputes or potential conflicts without resorting to litigation. Under English and Welsh law, this document serves as a bilateral agreement where each party agrees to relinquish their rights to pursue legal action against the other regarding specific matters. The agreement typically includes details of the disputes being settled, consideration provided, and specific terms of the release. It's particularly useful in commercial disputes, employment separations, or following the completion of significant transactions where parties wish to prevent future litigation. The document must comply with English contract law principles and should clearly define the scope of claims being released.
