Non Liability Agreement

Nonliability agreements are used for various purposes as contracts between two parties. They protect one party from a liability lawsuit brought by another party.

Purpose

A nonliability agreement is used to protect the company that issues it. A company protects itself by having a person sign this agreement, stating that performing a specified activity may involve risks or damage, and that, because of these risks, injury, illness or death could occur. The agreement states that the person will not hold the company liable if something negative happens as a result of the activity.

Uses

Almost any activity could require a nonliability agreement. The agreements may be employed by, for example, health clubs and sporting leagues. Companies often require such agreements for employees traveling on business-related trips. Businesses also use these agreements when selling assets.

Details

A nonliability agreement contains the date and names of all parties involved. It precisely lists the activity at risk and all risks involved with the activity. The agreement requires the person to sign the agreement, stating that he understands the risks. A company purchasing an asset signs also will sign such an agreement, stating that the buyer cannot hold the seller responsible for problems occurring with the purchased asset.

References

• Christian Emergency Relief Teams International: Non-Liability Agreement
• Kamlet Reichert, Attorneys at Law: Successor Liability for Asset Purchasers
• Shore Point Amateur Radio Club: Non Liability Agreement Between S.P.A.R.C. and Its Members