What is a release in contract law?

A release in contract law refers to a legal document whereby one party relinquishes their right to pursue a claim or enforce a contract against another party. This concept is crucial because it allows parties to settle disputes or end their contractual obligations without the need for litigation. When a release is executed, the party that is relinquishing their rights cannot later bring a claim based on the same issue or conduct specified in the release.

This idea hinges on the intention of the parties involved to create a binding agreement that precludes future legal action concerning the specified claims. Releases are commonly used in various contexts, such as settlements, waivers of liability, and even in contract negotiations, to provide clarity and certainty about the rights being waived.

The other options indicate different aspects of contracts or agreements which do not encapsulate the definition of a release. For example, an outline of new terms in a contract pertains to amendments or modifications, while a verbal agreement would not typically be sufficient to modify a contract due to the necessity of enforceability often requiring written documentation. Lastly, notarization may enhance the credibility of a document but is not a defining characteristic of a release itself. Therefore, the central feature of a release is specifically the voluntary relinquishment of rights to pursue claims, which