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The most significant reason to use a liability waiver is that businesses can protect themselves from damages claims and lawsuits associated with inherently risky activities. This level of protection can shield your profitability and company reputation as well as avoid unnecessary legal disputes.
A waiver and release agreement is a legal document that releases a party from liability and creates an enforceable promise for one party to not take legal action against another.
There are two main reasons a company will have you sign a liability waiver: 1) to document in writing that you have been warned of potential risks and 2) to remove their responsibility for injuries that arise from ordinary negligence.
A release of liability, also known as a liability waiver or a hold harmless agreement, is a contract in which one party agrees not to hold another party liable for damages or injury. These contracts are common in fields that involve some risk to property, finances, or health.
A release of liability is a legal agreement between two parties in which one party waives the right to hold another party responsible for potential damages or injuries.
In general, waivers of liability are enforceable in California so long as they have been drafted correctly and explicitly discuss the scope of coverage. Waivers also have to be legible and use high visibility text, and they cannot illegally waive unknown or unrelated claims.
While not necessary for a release and waiver agreement, money is often offered as a consideration. Other goods and services can also be offered as consideration. When the consideration is something of value, usually both parties agree to the release and waiver agreement.
Liability waivers are enforceable in California solely to the extent they shift to the customer the risk of ordinary negligence.
Should I sign a liability waiver? We can't advise people whether or not to sign a liability waiver and assumption of the risk contract in California. It is up to each potential participant to decide whether an activity is worth the risk of not being able to sue in the event of an injury.
There are two main reasons a company will have you sign a liability waiver: 1) to document in writing that you have been warned of potential risks and 2) to remove their responsibility for injuries that arise from ordinary negligence.