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Create a Mutual Release Agreement that formally releases both parties from all claims, duties, and liabilities connected to a previous arrangement. Designed for corporations and businesses in Ontario.
Also known as
MUTUAL RELEASE AGREEMENT
This Mutual Release (the “Release”) is entered into and takes effect on ______,
BETWEEN: ______ (the "First Party"), a corporation incorporated and operating under the laws of the Province/State of ______, with its principal office at:
______
AND: ______ (the "Second Party"), a corporation incorporated and operating under the laws of the Province/State of ______, with its principal office at:
______
RECITALS
NOW THEREFORE, for good and valuable consideration and the mutual promises contained herein, the parties agree as follows.
TERMS
The undersigned hereby finally and irrevocably mutually release each other from all liability to each other, and settle all actions and causes of action against each other, for damages, loss or injury sustained by either of them, however arising, present and future, known and unknown at this time, relating to ______.
If either party has instituted any legal proceedings against the other settled by this release, that party covenants to have them dismissed at that party's cost with express prejudice to bringing further proceedings against the other arising out of the same matter.
It is agreed that neither party to this mutual release will make any claim or take any proceedings against any person who might claim over against or claim contribution or indemnity from the other party in connection with any matter for which this mutual release is given.
It is understood and agreed that nothing in this mutual release is to be construed as an admission of liability in connection with any matter for which this mutual release is given.
The provisions of this Agreement must be read as a whole and are not severable and/or separately enforceable by either party hereto.
I understand that though it is not required, it is recommended that I obtain Independent Legal Advice before signing this acknowledgement.
This Agreement and its provisions shall be governed by the laws of the Province of Ontario.
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first written above.
How it works
Answer the questions on the left. Your document builds itself on the right as you type.
Get a clean, ready-to-sign PDF in seconds. No account, no watermark.
Book an appointment, bring your document, and we witness your signature and apply the seal.
A Mutual Release Agreement is a contract in which two parties agree to release each other from any and all claims, demands, or obligations arising out of a prior arrangement. Once both sides sign, neither can later sue or pursue the other over the matter covered by the release. It is one of the simplest ways to draw a clean line under a dispute or completed transaction without going to court.
The key requirement under Ontario contract law is that both sides receive consideration (something of value). In a mutual release, that consideration is the reciprocal promise not to sue. This distinguishes it from a one-sided release or a simple waiver.
These agreements appear whenever two parties want a clean, final break from an arrangement that has run its course or turned contentious. In Ontario, they are standard at the close of business relationships, completed contracts, and informal disputes that both sides want behind them.
Our template captures the essential details for both parties so the agreement clearly identifies who is releasing whom, and the effective date of the release.
A mutual release permanently extinguishes legal rights. Once signed, it is extremely difficult to undo. Ontario courts will only set aside a release in narrow circumstances: fraud, duress, unconscionability, or a fundamental mistake about what was being released.
For that reason, both parties should have the opportunity to consult their own lawyer before signing. A notary can witness your signature but cannot advise you on whether the terms are fair. If the underlying dispute involves significant money, employment rights, or real property, legal review is strongly recommended.
No. A mutual release is a private contract and is legally valid with just the parties' signatures. However, having both signatures witnessed or commissioned by a notary adds an extra layer of proof that each person signed voluntarily, with knowledge of the contents, and was positively identified. This can prevent disputes later about whether a signature was forged or coerced.
At our office, the process is straightforward: bring valid government-issued photo ID, sign in front of the notary, and we affix our seal and signature as witness. The flat fee is $19.90 per signature witnessed.
Both parties do not need to attend together. Each can sign separately, and the agreement becomes effective once both have signed.
Frequently asked
Fill it in online, download a ready-to-sign PDF, then bring it in and we will notarize it, in person across Ottawa or online.