Non-Liability Agreements

The Definition and The Purpose Of Non-Liability Agreements

Non-liability agreement is an agreement established prior to the breach of contract and tort damages with consentaneously and bilateral declaration of intent of debtor and creditor. A non-liability agreement is a contract in which a party agrees to waive the right to seek compensation or take legal action in the event of a harmful event.

In other words, non-liability agreements are legal transactions that provide non-liability to parties partially or completely in case of a breach of contract at a future date. Also these agreement have the characteristics of act of disposal for the creditor and acquisitive transaction for the debtor. The aim of the parties is to limit the liability and avoid any future claims for indemnity.