What key term describes an agreement that releases all parties from further obligations?

What key term describes an agreement that releases all parties from further obligations?

• A. Cancellation Agreement
• B. Mutual Release
• C. Withdrawal Document
• D. Termination Notice

Answer: (B)

The term that best describes an agreement that releases all parties from further obligations is "Mutual Release." This type of agreement is a legally binding document where all involved parties agree to release one another from any further claims, liabilities, or obligations that may arise from a specific contract or agreement. In real estate and other contractual situations, this is often used to confirm that all parties have settled their differences and no longer owe each other any duties or responsibilities. In contrast, a cancellation agreement typically refers to the act of nullifying a contract but may not necessarily include a release from all obligations. A withdrawal document usually pertains to removing a party from an agreement or action but does not imply a mutual release of obligations among all parties involved. A termination notice is more focused on ending a contract rather than releasing parties from their obligations. Therefore, "Mutual Release" is the most accurate term to encompass the full release of obligations between parties.

The term that best describes an agreement that releases all parties from further obligations is "Mutual Release." This type of agreement is a legally binding document where all involved parties agree to release one another from any further claims, liabilities, or obligations that may arise from a specific contract or agreement. In real estate and other contractual situations, this is often used to confirm that all parties have settled their differences and no longer owe each other any duties or responsibilities.

In contrast, a cancellation agreement typically refers to the act of nullifying a contract but may not necessarily include a release from all obligations. A withdrawal document usually pertains to removing a party from an agreement or action but does not imply a mutual release of obligations among all parties involved. A termination notice is more focused on ending a contract rather than releasing parties from their obligations. Therefore, "Mutual Release" is the most accurate term to encompass the full release of obligations between parties.