A Release of Liability Form or Waiver of Liability Agreement is a legal document between two parties — the releasor or person promising not to sue — and the releasee, person, or company potentially liable.
By signing this form, the releasor acknowledges that they understand the risks and claims and agrees not to sue the releasee for past or future injuries or damages.
This form is alternatively used when an accident like a car wreck or property damage has already occurred. Instead of going through an expensive lawsuit, both parties agree to settle the dispute out of court.
What to Include
A simple release of liability form will identify the following essential elements:
- Releasor: a person who promises not to sue or take any legal action against the owner or organizer of the event or activity being attended
- Releasee: owner or organizer of the event or activity who is at risk of being sued
- Effective Date: when the agreement shall take effect
- Event: description of event, action, or circumstances being held
- Consideration: the amount of money, promised (in)action, or something of legal value given in return for signing the document.
- Governing Law: disagreements will be resolved using one state’s laws.
Pros and Cons
Pros
- Could reduce time spent in court
- May save you money on things like unpaid medical bills and legal fees
- Fear of participating in or organizing future events
- Might reduce the likelihood that you will be sued
- May minimize frivolous lawsuits
Cons
- People may be wary of the business or individual and reconsider their participation.
- The document may not be enforceable
- It could be costly to enforce
- It may not be easy to prove
Consequences of Not Using a Waiver
Without a written waiver, everyone faces the possibility of being summoned to court or dragging out a disagreement over who owes what.
Here are just a few of the possible consequences that this form can prevent:
Releasor Releasee
Lost Time
Lost Time
Lost Money
Lost Money
Mental Anguish
Mental Anguish
The Most Common Liability Situations
These are some of the most common situations in which a waiver form may be used:
| Releasor | Releasee |
|---|---|
| General Release | General Release |
| Mutual Release | Mutual Release |
| Car Accident | Car Accident |
| Damage to Property | Damage to Property |
| Client | Service Provider |
What Should Be Included in a Waiver Form
A simple release of liability form should generally address the following basics:
- Who promises not to pursue any legal action against another party
- What amount of money or effort (including being able to participate in the activity) will be given in exchange for the promise
- When the document takes effect, usually before the activity occurs
- How neither party admits they acted wrongfully by signing the Waiver
A waiver form can address incidents that have already occurred or may happen in the future, given the activity’s inherent riskiness.
A liability form may also include one of these additional provisions:
- Assumption of Risk: the participant understands that the activities are inherently hazardous yet agrees to assume the risk of being injured or harmed
- Insurance: the individual is responsible for their own medical, health, or life insurance
- Medical Treatment: the person will not sue even if they are further injured by any medical treatment given during an emergency at the event
- Modifications: any changes to the document must be in writing
- No Admission: signing the document does not mean either party admits wrongdoing
- Parent or Guardian Signature: a minor under the age of 18 is legally unable to sign a contract and should have a parent or guardian co-sign the agreement (although in certain states, a parent or guardian cannot waive a minor’s legal rights to sue for negligence)
- Photographic Release: the participant agrees that images or recordings can be used in connection with the event attended
- Right to Attorney: everyone understands that they have the chance to consult with an attorney about the document and are otherwise signing it voluntarily
- Severable: the rest of the document is valid even if one part of the agreement is not
- Witness or Notary: the signature of a third person who acknowledges the form was genuinely signed by both parties is optional
