What Is A Release?
The vast majority of all personal injury claims are resolved outside of courtrooms through settlements. A settlement agreement is a legally binding contract between the victim and the defendant whom they filed the lawsuit against. The terms of a settlement are negotiated back and forth until an agreement can be reached. Once negotiations have concluded, and a settlement amount is agreed upon, you will have to review and sign a release of liability form before your check is processed.
The Purpose Of A Release
A release is a binding contract agreeing to settle a claim in return for a sum of money. The primary purpose of the release is to prevent the victim from filing other claims against or seeking further damages from a defendant based on the same incident. In other words, you consent to drop all claims against the other party in return for the settlement money. Defense attorneys and their insurance companies are responsible for drafting releases.