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Things you need to know about Mutual Quitclaim and Waiver.


1. What is a Mutual Quitclaim?

A Mutual Quitclaim is a formal document where all the parties involved waive their respective claims or demands against each other arising from a dispute, contract or any other obligation. This is in contrast to an ordinary Quitclaim where only one party waives his/her claim against the other.

The Quitclaim is executed when all the parties to a potential dispute agree on a settlement to avoid future litigation which is both costly and lengthy.  It may also be used to end an ongoing dispute to quickly & finally resolve it.


2. When do you need a Mutual Quitclaim?

A Quitclaim is usually needed by parties to a potential or ongoing dispute after reaching a settlement and wish to settle all claims against each other. The Quitclaim may be for a consideration such as one party paying the other a sum of money.


3. Is a Quitclaim always valid?

As a general rule the Quitclaim must be voluntarily entered into by the parties. There must have been no fraud or coercion used on any party.  Otherwise, if a party was merely coerced into executing the Quitclaim, it will not have any legally binding effect and the injured party is not barred from bringing his claims against the other party.


4. How can a Quitclaim protect you?

A Quitclaim is meant to (a) bring peace between the parties; (b) settle all issues; and (c) prevent potentially costly and lengthy litigation.  The Quitclaim has the advantage of stopping any potential dispute from becoming a full-blown litigation and settling any ongoing dispute quickly and easily.

Once the Quitclaim is executed all the parties involved can no longer bring a claim against the other, whether or not they were aware of such claim at the time the Quitclaim was executed.


5. What information do you need to create a MutualQuitclaim?

To create your Mutual Quitclaim you’ll need the following minimum information:

  1. The type of entities making the waiver (i.e. individual or business) as well as their name and details (i.e. nationality and address)
  2. The consideration for the quitclaim (i.e. settlement amount)
  3. The dispute, contract or obligation which is the subject of the waiver.

Related Documents.

Activities that involve a Mutual Quitclaim and Waiver sometimes use the following documents. You may be interested in them:

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