Releasee: Overview, definition and example
What is a releasee?
A releasee is the party that is freed from responsibility or liability under a contract. In a release agreement, the releasee is protected from legal claims or financial obligations related to specific actions or events. Essentially, the releasee is shielded from future lawsuits or claims that may come up regarding the issues covered in the release.
In business contracts, the releasee can be a company, individual, or any other entity that receives this protection.
Why is a releasee important?
A releasee is important because it ensures that a party is protected from being held responsible for specific actions, events, or outcomes. This can provide significant legal and financial relief, particularly in situations where one party might otherwise face claims or liabilities. For businesses, identifying the releasee helps clarify who is shielded from legal exposure and under what circumstances.
Understanding releasee through an example
Imagine a company, ABC Corp, enters into a settlement agreement with a former employee, John Doe, to resolve a workplace dispute. As part of the settlement, ABC Corp is named as the releasee, meaning John agrees not to pursue any further legal claims against the company regarding the incident. The company is now protected from future lawsuits related to the specific matter.
In another example, a contractor hired to manage a construction project might sign an agreement that releases the client from liability for any accidents on the job site. The contractor would be the releasee, and they are protected from future claims arising from workplace incidents during the project.
An example of a releasee clause
Here’s how a releasee clause might look in a contract:
“The Releasor hereby agrees to release and hold harmless the Releasee from any and all claims, damages, or liabilities arising out of the incident described in this Agreement.”
Conclusion
A releasee is a party protected from future legal claims or responsibilities in a contract. Understanding the role of a releasee helps businesses manage risk and avoid unnecessary liability. By including clear releasee clauses, businesses can ensure they are shielded from potential legal action related to specific situations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.