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A Release Agreement legally frees one party from future claims, liabilities, or obligations related to a specific matter. In Saudi Arabia, these agreements commonly appear in employment settlements, property transactions, and dispute resolutions aligned with Shariah principles and the Kingdom's Civil Transactions Law.

When parties sign a release, they formally waive their right to pursue further legal action about the covered issues. The agreement must clearly specify what rights are being given up, include fair consideration (iwad), and follow Saudi legal requirements for contract formation. Many businesses use releases alongside settlement payments or as part of broader transaction closings.

Use a Release Agreement when ending any business relationship that could lead to future disputes under Saudi law. Common scenarios include settling employment disagreements, concluding construction projects, or finalizing property sales. The agreement becomes especially important when dealing with high-value transactions or situations involving potential liability.

The timing matters most during major business milestones: employee departures, contract terminations, or dispute settlements. Getting a signed release helps prevent costly legal claims later and provides clear documentation that complies with Saudi Civil Transactions Law. Many organizations pair these agreements with final payments or settlement amounts to ensure proper closure.

• Mutual Release And Settlement Agreement: Both parties release each other from claims, ideal for resolving business disputes or partnership dissolutions
• Release Of Liability Agreement: One party waives right to sue another for specific risks, common in recreational activities or property use
• Settlement Agreement And Release Of All Claims: Comprehensive agreement ending all possible claims between parties, often used in employment or major commercial disputes
• Waiver Of Liability Form: Simplified release focusing on specific activities or events, popular in sports and entertainment sectors

• Corporate Legal Departments: Draft and review Release Agreements to protect company interests during transactions, settlements, or employee departures
• Business Owners: Use releases when concluding contracts, settling disputes, or protecting against liability in daily operations
• HR Managers: Implement releases during employee separations, especially for senior staff or sensitive terminations
• Private Law Firms: Prepare customized agreements aligned with Saudi law, often representing either party in negotiations
• Risk Management Teams: Ensure releases properly address potential liabilities and comply with Shariah principles

• Identify Parties: Gather full legal names, contact details, and official registration numbers for all involved entities
• Define Scope: List specific claims, rights, or obligations being released, ensuring alignment with Saudi Civil Law
• Document Facts: Collect dates, amounts, and details of any underlying transactions or disputes
• Consider Compensation: Specify any payment or consideration (iwad) exchanged as part of the release
• Verify Authority: Confirm signatories have proper authorization under Saudi law to execute the agreement
• Use Our Platform: Generate a customized, Shariah-compliant Release Agreement that includes all required elements automatically

• Party Details: Full legal names, addresses, and registration numbers of all involved entities
• Release Language: Clear statement of claims being released, following Shariah-compliant terms
• Consideration: Specific mention of payment or value (iwad) exchanged for the release
• Governing Law: Express reference to Saudi law and Islamic principles
• Effective Date: Clear timing of when the release takes effect
• Signature Block: Arabic and English names, titles, and company stamps where required
• Dispute Resolution: Saudi courts' jurisdiction and applicable resolution mechanisms
• Severability: Clause ensuring partial invalidity doesn't void entire agreement

A Release Agreement differs significantly from an Affidavit and Indemnity Agreement in several key aspects under Saudi law. While both documents deal with liability, they serve distinct purposes and operate differently in practice.

• Purpose and Timing: Release Agreements terminate existing claims or rights after an event, while Affidavit and Indemnity Agreements protect against future claims or losses
• Legal Structure: Releases permanently end specific legal rights, whereas indemnity agreements create ongoing obligations to protect against future losses
• Scope of Protection: Release Agreements typically cover known, specific issues from the past, while indemnity agreements address potential future risks and uncertainties
• Shariah Compliance: Release Agreements focus on settling existing matters with clear consideration (iwad), while indemnity agreements must carefully structure future obligations to meet Islamic finance principles