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Mutual Release Agreement Template

A mutual release agreement closes out a dispute by having each party release the other from claims connected to it — used for business disputes, contract disagreements, or any other disagreement two parties want to put behind them, not only employment exits. Download the ready-to-fill template below, or read the full clause checklist first — it covers what a solid mutual release needs and the mistakes that most often weaken one.

Download the Mutual Release Agreement

A complete, ready-to-fill PDF — 8 clauses, blanks for every detail, and a signature block for both parties. Free, no email, no account. Read it and adapt it before you use it; the cover page explains what it can and cannot do for you.

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Need the other party to sign it too? Send it for signature with a full audit trail and a tamper-evident seal on the finished file — they never need an account. See pricing.

This is a template, not legal advice

This document is a general-purpose template provided for information only. It is not legal advice, it does not create a lawyer–client relationship, and nobody has reviewed it against your situation.

Laws differ by country, state and province, and they change. A clause that is standard in one place can be unenforceable — or illegal — in another. Terms that are ordinary between two businesses can be void in a consumer or employment context.

Read every clause before you use it, fill in every blank, and delete anything that does not apply. For anything high-value, unusual, or that you could not afford to lose a dispute over, have a qualified lawyer in your jurisdiction review it before it is signed.

What a mutual release needs

  • Both parties’ names

    Full legal names (individuals) or company names of everyone involved. A mutual release only works if both sides are named as both releasing and released parties.

  • Recital of the dispute

    A short description of what the disagreement was actually about — a contract dispute, an unpaid invoice, a falling-out between business partners, or something else. This anchors what the release covers.

  • Mutual release language

    The operative clause: each party releases the other, not just one side releasing the other. A one-way release only protects one party — that’s a different document.

  • Scope of released claims

    A release should cover claims that are known AND unknown as of the signing date — otherwise a claim nobody thought of at the time can resurface later.

  • Settlement terms, if any

    State plainly whether any payment or other consideration changes hands to resolve the dispute, or that none does. Many mutual releases close out a dispute with no money involved.

  • No admission of liability

    Settling a dispute isn’t the same as admitting fault. This clause makes clear neither side is conceding wrongdoing, and that the agreement can’t be used as evidence of it.

  • Confidentiality, if relevant

    Many settlements are conditioned on keeping the terms — or the existence of the dispute — private. Include this if either side cares about that.

  • Governing law

    Which jurisdiction’s law applies if the release itself is ever disputed.

  • Signatures & date

    Both parties sign and date the agreement. Until this happens, neither side has actually released anything.

Common mistakes to avoid

  • Using a one-way release when both sides gave something up in the dispute — that needs a mutual release, not a unilateral one.
  • Releasing only "known" claims, which leaves the door open for a claim that surfaces later from the same underlying dispute.
  • Treating this as an employment severance document — a mutual release is for closing out any dispute (business, contract, personal); it has no severance-pay structure and isn’t built around an employer paying an exiting employee.
  • Leaving the description of the dispute too vague to identify what’s actually being released, which can make the release harder to enforce if it’s ever challenged.
  • Skipping a proper signature step — an emailed "we’re good now" is weak evidence that either side actually agreed to give up their claims.

Turn this into a signed document

Fill in the template above, then send it to the other party for signature. They sign online and never need an account, and the finished file comes back sealed with an audit certificate showing who signed, when, and from where.

Only you need to sign your own copy? Use the free self-sign tool instead — no account needed.

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Frequently asked questions

What is a mutual release agreement?+
A mutual release agreement is a contract where two parties who have a dispute each agree to give up (release) their claims against the other, in exchange for the other side doing the same — and, often, a settlement payment. It’s used to close out a disagreement without going to court, whether that’s a business dispute, a contract disagreement, or a falling-out between partners.
How is this different from a severance agreement?+
A severance agreement is specific to an employer paying an exiting employee severance pay in exchange for a release of employment claims — usually one-directional, with the employer getting the release. A mutual release has no employer/employee framing and no severance-pay structure: both parties release each other, and it’s used for any kind of dispute, not just an employment exit. See the severance agreement template.
Does a mutual release need to involve a payment?+
No. Plenty of mutual releases close out a dispute with no money changing hands at all — both sides simply agree to drop their claims against each other and move on. If a payment is part of the settlement, state the amount and timing clearly; if not, say so explicitly rather than leaving it silent.
Can released claims include ones neither party knows about yet?+
A well-drafted mutual release covers claims that are unknown or unsuspected as of the signing date, not just the ones already identified — otherwise a claim from the same dispute can resurface later. Some jurisdictions require specific language to waive unknown claims; check local law before relying on this for anything high-value.
Is an e-signed release legally binding?+
Yes, in most countries. A typed or drawn electronic signature is legally recognized for ordinary settlement agreements under laws like the US ESIGN Act and UETA, the EU and UK’s eIDAS rules, and equivalents elsewhere. Are electronic signatures legally binding?.

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