A release is the operative provision of most settlements, and its scope should be a deliberate choice.
Releasing and released parties. Named entities plus affiliates, parents, subsidiaries, predecessors, successors, assigns, officers, directors, employees, agents, insurers and attorneys — each category considered rather than recited.
Claims released. Two common approaches: all claims arising from the identified matter, or all claims of any kind to the date of the agreement. General releases resolve more but require the parties to be comfortable releasing unknown disputes.
Unknown claims. Several states require specific statutory language to release claims the releasing party does not know about, and without it a general release does not reach them.
Non-releasable claims. Workers compensation, unemployment, vested benefits, future claims, claims arising after the date, and rights to enforce the agreement itself.
Agency participation. A release may waive individual monetary recovery but may not bar filing a charge or communicating with a regulator.
Covenant not to sue in addition, with the consequence of breach stated.
Mutuality. Consider whether a mutual release is appropriate; a one-way release leaves the releasing party exposed to claims arising from the same facts.