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Mutual Release Of Claims

Mutual Release Of Claims Template for India

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Key Requirements PROMPT example:

Mutual Release Of Claims

"I need a Mutual Release of Claims agreement for dissolving a technology partnership between two IT companies in Bangalore, with specific provisions for intellectual property rights and ongoing maintenance obligations until March 2025."

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Document background
The Mutual Release of Claims agreement is a critical legal instrument used in Indian business and personal contexts when parties wish to formally resolve disputes or terminate relationships while preventing future litigation. This document is typically employed following settlement negotiations, business separations, or dispute resolutions, where parties agree to release each other from any claims, known or unknown, arising from their past relationship. The agreement must comply with Indian contract law requirements, including proper consideration and stamping under relevant state laws. It's particularly valuable in situations involving employment terminations, business partnership dissolutions, settlement of commercial disputes, or conclusion of project-based relationships, providing a clean break while ensuring legal finality under Indian jurisdiction.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Provides context about the relationship between the parties and the circumstances leading to this release

3. Definitions: Defines key terms used throughout the agreement, including 'Claims', 'Release Period', and other relevant terms

4. Mutual Release: Core section detailing the mutual releases being given by each party, including scope of claims being released

5. Consideration: Specifies the consideration being exchanged for the releases (even if nominal)

6. Representations and Warranties: Each party's declarations about their authority to enter into the agreement and ownership of claims being released

7. No Admission of Liability: Statement that the agreement and releases do not constitute admission of liability by any party

8. Confidentiality: Requirements regarding confidentiality of the agreement and its terms

9. Governing Law: Specifies that Indian law governs the agreement and enforcement

10. Execution: Signature blocks and execution formalities

Optional Sections

1. Non-Disparagement: Include when parties wish to prevent negative statements about each other after the release

2. Return of Property: Include when there is physical or intellectual property to be returned between parties

3. Future Cooperation: Include when parties need to cooperate on ongoing matters despite the release

4. Tax Implications: Include when the release involves significant monetary consideration or tax implications

5. Survival: Include when certain provisions need to survive the release

6. Dispute Resolution: Include when parties want specific arbitration or mediation procedures for future disputes

7. Known Claims Exception: Include when specific claims are to be excluded from the release

Suggested Schedules

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

2. Schedule B - Excluded Claims: List of any specific claims explicitly excluded from the release

3. Schedule C - Settlement Payments: Details of any monetary consideration or payment schedule, if applicable

4. Appendix 1 - Related Entities: List of affiliated entities, subsidiaries, or related parties covered by the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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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