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Release of Contract Claim


Overview
- The Release of Contract Claim is used by an individual or company that is releasing a "breach of contract" claim against another individual or company.
- Many situations arise where an individual or company has entered into a contract for goods or services and the contract was not adequately performed.  
- Remember, a contract does not always have to be written to be enforceable.  Further, a contract does not always have to be "express"; it may also be implied.  
- The party paying the money (Releasee) should make sure that it has a release from all of the parties who may have a claim.  This means that if there was another party to the contract or a possible third party beneficiary, the Releasee should obtain releases from them as well.
- This release assumes that the party receiving the money (Releasor) has fully performed all of his or her obligations and that the other party has no claim of breach.
- By signing his document, you will release the other party from all claims, not just one specific claim.  If there is a possibility that you have other claims against the person or company that will be released, consult an attorney before signing.

When You Need It
- When you or your company pay monetary damages to the party claiming the breach of contract.
- The Release should be signed by the party receiving the money at, or prior to, the time the money is paid.  
- By signing the Release, the person receiving the money is indicating receipt of compensation for the damage, and that the compensation is sufficient.


Getting Started

You will need:
- Name and address of the party paying the money for the breach of contract claim.
- Name and address of the party receiving the money for the breach of contract claim.
- The title of the contract in dispute and the date it was signed.
- The terms of the settlement (payment to made and when).

When to Review and Revise 
- To review the terms stated in the Release prior to signing (they cannot be easily changed after the document is signed).
- For use in the settlement of any other contract disputes.