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MSA Release Agreement

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MSA Release Agreement

This MSA Release Agreement (the "Agreement") is made and entered into as of by and between Client Name: , an entity of type with principal place of business at ("Client"), and Provider Name: , an entity of type with principal place of business at ("Provider").

RECITALS

WHEREAS, Client and Provider previously entered into a Master Services Agreement identified as MSA Reference: , effective as of (the "MSA"), governing the provision of services and related obligations; and

WHEREAS, disputes, claims, and differences have arisen between the parties relating to the performance, termination, invoicing, or interpretation of the MSA and related work; and

WHEREAS, the parties desire to resolve and finally release all claims arising out of or related to the MSA on the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Released Claims" means any and all claims, demands, causes of action, suits, debts, liabilities, obligations, fees, costs, expenses, losses, and damages of any kind or nature, whether known or unknown, asserted or unasserted, fixed or contingent, that arise out of, relate to, or are in any way connected with the MSA, any Statement of Work thereunder, or the parties' relationship under the MSA, through the Effective Date.

1.2 "Effective Date" means the date first written above in the introductory paragraph.

2. MUTUAL RELEASE

2.1 In consideration of the mutual promises contained in this Agreement, Client, on behalf of itself and its past and present subsidiaries, affiliates, officers, directors, employees, agents, successors and assigns, hereby fully and forever releases and discharges Provider, and Provider's past and present subsidiaries, affiliates, officers, directors, employees, agents, successors and assigns, from all Released Claims.

2.2 Likewise, Provider, on behalf of itself and its past and present subsidiaries, affiliates, officers, directors, employees, agents, successors and assigns, hereby fully and forever releases and discharges Client, and Client's past and present subsidiaries, affiliates, officers, directors, employees, agents, successors and assigns, from all Released Claims.

2.3 The foregoing mutual releases expressly cover any and all claims known or unknown and the parties acknowledge that this broad mutual release is an essential element of the agreement between them.

3. CONSIDERATION

3.1 As consideration for the releases set forth in Section 2, the following consideration shall be provided: Payment Amount: payable by Provider to Client on or before .

3.2 The parties agree that the consideration described above is in full satisfaction of the Released Claims, except for obligations expressly preserved by this Agreement.

4. EXCEPTIONS TO RELEASE

4.1 Notwithstanding the foregoing releases, nothing in this Agreement shall: (a) waive or affect either party's rights or obligations under any confidentiality, non-disclosure, or intellectual property provisions that survive termination of the MSA; (b) release any party from obligations to make payments expressly set forth in this Agreement; or (c) release claims that cannot be released as a matter of law.

5. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants to the other that: (a) it has full authority to enter into this Agreement; (b) the person signing this Agreement on its behalf is duly authorized; (c) it is not aware of any material facts that would render the releases herein invalid or unenforceable; and (d) it has not assigned or transferred any Released Claim to any third party.

6. CONFIDENTIALITY

The existence and terms of this Agreement shall be kept confidential by the parties, except as required by law, regulation, or a binding order of a court or governmental authority. If disclosure is legally compelled, the disclosing party shall, to the extent permitted by law, provide prompt notice to the other party.

7. COOPERATION AND FURTHER ASSURANCES

The parties shall cooperate to execute any further documents or instruments reasonably necessary to effectuate the releases and other terms of this Agreement, including mutual dismissal of pending actions, provided such documents do not expand the releases or create new obligations inconsistent with this Agreement.

8. INDEMNIFICATION

Each party agrees to indemnify, defend and hold harmless the other party from and against any third-party claims resulting from its breach of the representations, warranties, or covenants contained in this Agreement.

9. NOTICES

Notices shall be deemed given when delivered in person, by nationally recognized overnight courier, or three (3) business days after deposit in the U.S. mail, postage prepaid, to the address specified above or to such other address as a party designates by notice in accordance with this section.

10. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

11. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed and the remaining provisions shall remain in full force and effect.

12. AMENDMENTS; WAIVER; COUNTERPARTS

Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties. No waiver shall be effective unless in writing and signed by the waiving party. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

13. SURVIVAL

Notwithstanding the releases set forth in this Agreement, the provisions that by their nature are intended to survive the termination of this Agreement, including but not limited to Sections 4 (Exceptions), 6 (Confidentiality), 8 (Indemnification), 10 (Governing Law), 11 (Entire Agreement; Severability) and 12 (Amendments; Waiver; Counterparts), shall survive.

SCHEDULE A — KNOWN CLAIMS (IF ANY)

Client Name:

By:

Date:

Provider Name:

By:

Date:

Enter text✕

What an MSA Release Agreement Is and when it’s used

An MSA Release Agreement is a contract used to release claims, liabilities, or obligations arising under an existing Master Services Agreement (MSA). It identifies the releasing and released parties, describes the contracts or claims being released, sets any consideration paid, and records the effective date and scope of the release. These agreements conclude settlements, permit contract close-outs, and limit future disputes. Electronic execution is generally valid under ESIGN (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and retention requirements are satisfied.

Who typically prepares and signs an MSA Release Agreement

Typical parties that complete an MSA Release Agreement include corporate legal teams, vendors, and clients resolving contract closeouts.

  • In-house legal and contract managers finalizing settlement terms and risk allocation.
  • Vendors and service providers documenting release of claims after delivery or termination.
  • Finance and procurement teams recording consideration and updating accounting records.

Smaller parties may use standard templates and online signing; larger organizations often route agreements through contract management and procurement workflows.

Key security and compliance features to look for

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Audit Trail: Comprehensive timestamps and IP logs
Certifications: SOC 2 Type II and ISO 27001
HIPAA: BAA available for covered workflows
Access Control: Role-based permissions and SSO
File Support: PDF, DOCX, HTML and Excel

Primary risks and legal consequences to avoid

Tax Reporting: 1099 issues possible (IRC §6721)
Name Mismatch: Can invalidate or delay enforcement
Vague Scope: Leaves disputes about covered claims
Missing Consideration: May render release unsupported
Improper Signature: Fails ESIGN validity test
Late Execution: Misses contractual or statute deadlines

Common mistakes when preparing an MSA Release Agreement

  • Using overly broad release language that unintentionally covers unrelated claims or future obligations, creating uncertainty and post-signing disputes.
  • Failing to identify parties precisely by legal entity name and state of formation, which can make the release unenforceable or confusing.
  • Neglecting to state consideration or treating a release as unilateral without documenting payment, which can undermine contract formation elements.
  • Skipping signature authority checks and signing without board or delegated authorization, risking challenge to the release's validity.

Step-by-step: completing an MSA Release Agreement

Follow these four steps to prepare and finalize a clear, enforceable MSA Release Agreement suitable for electronic or paper execution.

  • 01
    Gather records: Collect the MSA, amendment history, and dispute documents.
  • 02
    Define parties: Use exact legal names and entity details for each signatory.
  • 03
    Describe scope: Specify the claims, dates, and contracts being released.
  • 04
    Execute: Obtain required signatures, dates, and notarization if needed.

Typical digital workflow for an MSA Release Agreement

A standard e-sign workflow reduces turnaround time: prepare, place fields, send, and capture the audit trail for proof of execution.

  • Prepare document: Upload final draft and attach exhibits or schedules.
  • Place fields: Add signature, initial, and date fields where required.
  • Send to signers: Route by role or send unique signing links by email.
  • Capture evidence: Store certificate of completion and event log.

Essential components every professional MSA Release Agreement should include

Cover these elements in plain language to avoid ambiguity and support enforceability across jurisdictions.

Identifying Parties

List full legal names, entity type, and state of formation; include addresses and an authorized signatory block for each party to ensure precise identification.

Recitals

State the background facts and reference the original MSA, amendments, and relevant dispute or termination that lead to the release for clear context.

Scope of Release

Define the claims, time periods, contract sections, and any excluded obligations to avoid overbreadth and limit future litigation over interpretation.

Consideration

Specify monetary amounts, credits, or other consideration exchanged for the release and tie payment terms to execution or a clear payment schedule.

Representations

Include mutual representations about authority, no outstanding undisclosed claims, and that signers understand legal rights being waived.

Governing Law

Name the state law governing the agreement and a dispute-resolution clause, including venue or arbitration provisions, to reduce uncertainty.

Technical considerations for digital completion and distribution

Use a platform that supports secure eSignatures, audit trails, and the file formats your team uses.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS, or advanced methods

Key dates and timing to plan before execution

Planning execution timing prevents tax, accounting, or procedural issues; note the effective date, signing deadlines, and any related reporting dates.

Effective Date:

Date when the release takes effect; use MM/DD/YYYY format

Execution Deadline:

Complete signature and payment by the agreed deadline in the settlement terms

Tax Reporting:

If consideration is taxable, prepare 1099 reporting by Jan 31 next year

Notarization Window:

Complete notarization or RON sessions before recording or funding

Record Retention Start:

Retention periods begin on the effective or execution date

Typical eSignature provider comparison for executing MSA Release Agreements

This table compares common plan and feature dimensions across providers. signNow is listed first per vendor comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year No cap No cap No cap

Frequently asked questions about MSA Release Agreements

Answers to common execution, enforceability, and post-signature questions for MSA Release Agreements used in U.S. commercial contexts.


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