A Brief Introduction About the Liability Waiver Agreement
A Liability Waiver Agreement is a legal document that is created between two or more parties when one party is giving up their rights or liabilities of a certain service and or work product to another party. A prominent example of this type of agreement can be found when an organization has been acquired, and thus the employees of the same organization are transferred to the parent organization.
This document contains the finer details of the transaction between them and is legally binding in any court of law. In this contract, the second party is usually the one who is taking over the responsibility or in other words, the liability of the work product and or service that is being transferred.
In this article, we will be discussing what a liability waiver is and also how you can make use of one for your organization.
Who Takes the Liability Waiver Agreement – People Involved
In the creation of a Liability Waiver Agreement, there are usually two or more parties involved. The first party is the company and or organization who is handing over the rights to the service and or work product, and the second party is the company and or organization who is taking over the liability of the work product and or service in context.
In legal terminology, the first party is referred to as the Business or Individual releasing the liability, and the second part is referred to as the Business or Individual being released from the liability.
Purpose of the Liability Waiver Agreement – Why Do You Need It
The primary purpose of this agreement is to establish a legal understanding between both the organizations and to make sure that the interests of the private parties along with the collective are protected at all points in time. While the use of a Liability Waiver Agreement is every day enough in today’s industry, there are still instances when both parties are confused about the purpose of the agreement or how to make proper use of the same.
Mentioned below are some of the most important pointers that are worth noting for a Liability Waiver agreement.
When a specific business or individual is signing a liability waiver agreement, they are in essence, being released from the charges of damage, accident, or expense that might have occurred when they were under contract. Once the papers for a liability agreement has been signed, the first party can no longer be held accountable for any mishappenings that occur to the service and or work product in context.
Similar to any other contract, a liability waiver agreement is known by many names in the industry such as a release form, waiver form and most commonly as a liability release form.
One of the essential aspects that are mentioned in the contents of a liability waiver contract is that the second party can no longer engage the first party in the formation of a lawsuit or any legal battle for that matter once the papers have been signed.
The best possible scenario of when a liability agreement or waiver can be used is when the first party in context is involved in an activity, where there is a known and accepted risk of economic loss and or injury. Some of the most common examples where a liability waiver is used are the following: high-risk recreational sports such as parachuting, skydiving, and paragliding. Combat sports like martial arts, wrestling and or football or cricket. When the first party is entering into a zone where there lies a substantial risk of injury and or loss of life. When the first party is about to handle toxic, radioactive, and or any material that can cause a threat to life.
For example, if a particular individual wants to participate in a skydiving adventure, the company organizing the same will provide the necessary equipment such as the parachute, the plane ride till the jump point, safety instructions and also an experienced instructor. However, before the ride starts, the company would ask the individual to sign a liability waiver agreement which states that the individual understands and is well aware of the risks that are involved and agrees not to file a lawsuit against the skydiving company if there is an accident or injury during the event.
Contents of the Liability Waiver Agreement – Inclusions
Involved Parties: There are mainly two parties involved; the primary being the individual and or business who is waiving the rights of the liability and the second party who is being released from the liability in the said context. In legal terminology, the parties are referred to as the Business or Individual releasing the liability, Business or Individual being released from the liability and the legal document is referred to as the agreement.
Effective Date: This section of the agreement outlines the date from which this contract will stand legally binding and also the date on which the same can be dissolved.
Application: This agreement is applicable in the state, city, or county where it was originally drawn at.
How to Draft the Liability Waiver Agreement
A Liability Waiver Agreement can be drafted by simply following the steps mentioned below.
Organize a meeting both the parties and discuss upon the terms and conditions of the agreement, such as the tenure for which the said this agreement is valid, the amount of funds that are being exchanged between both parties for the transaction to go through, the risks and injuries that can occur and most importantly the legal grounds on which this agreement is being signed.
After the two parties mutually agree to the conditions of the agreement, they can consult a lawyer and draw a Liability Waiver Agreement according to the requirements and specifications. Both the parties need to sign the documents in front of the lawyer after the agreement is drawn.
While negotiating the formation of a Liability Waiver Agreement, it must be taken care that the individual interests of both parties must be addressed along with the common cause.
Benefits & Drawbacks of the Liability Waiver Agreement
The most significant benefits of having a Liability Waiver Agreement are as follows.
The contract mentions the responsibilities, obligations, and limitations and hence makes sure that both parties are well aware of them at all points in time. This is document acts as legal proof(1) and thus can be produced in court if there is a need in the future.
In the absence of a Liability Waiver Agreement, neither of the parties have legal proof of an understanding taking place between two entities, and thus if the matter is ever brought to court, both parties stand to lose.
What Happens In Case of Violation
In the case of violation of a Liability Waiver Agreement, certain remedies come into effect, and in a few cases the contract is dissolved, and a new set of terms and conditions are agreed upon. Other than violation of a Liability Waiver contract, if both parties mutually decide to end the liability agreement, they can do the same.
A Liability Waiver Agreement is created with the thought of initiating a smooth and efficient transaction between two parties and to make sure that both are mutually profited from the transaction. Thus, it is always advised that both parties create a Liability Waiver Agreement when such a sale is concerned.