A Deed of Release is a legally binding document formed once both parties agree to end the dispute by reaching a final verdict, thereby bringing the dispute to a close. Whether it arises from an employment matter or a commercial disagreement both the parties sign it with the expectation that the matter is settled permanently. In exchange for consideration typically a monetary payment. The releasing party gives up the right to pursue further legal action related to the subject matter of the deed.
Common Types of Disputes includes:
- Employment disputes (e.g. – unfair dismissal, redundancy)
- Commercial contract disputes
- Personal injury settlements
- Property or tenancy disagreements
Common Ways of Deed of Release Violation –
A breach can take several forms depending on the obligations set out in the deed. The most frequent violations include:
- Not paying the agreed settlement amount
- Keeps on giving defamatory statements despite a confidentiality clause.
- Disclosing confidential information that the deed required to be kept private.
Legal Options After a Breach
1. Sue for Breach of Contract
Because a Deed of Release is a binding contract, a violation gives the rights to the non-breaching party to file for the breach of contract compensation claim.
2. Seek Urgent Injunctive Relief
An urgent injunction can stop the other party from continuing the harmful conduct while the matter is fully litigated. Time is critical in these situations and legal advice should be sought immediately.
3. Claim Liquidated Damages
Some deeds include a liquidated damages clause. In case of breach, a pre-agreed sum should be payable immediately. If your deed contains such a clause, you may be entitled to claim that fixed amount without needing to prove the precise quantum of your loss provided the clause is enforceable and not considered a penalty.
Does a Breach Renew the Original Claims?
This is a question many clients ask and the answer is generally no. A breach of the deed does not automatically renew the original claims that were settled.
Steps to Take in case of breach
If you believe the other party has violated a Deed of Release, you should:
- Gather evidences such as communications, payment records and public statements
- Review the deed carefully to check the obligation exists that has been breached
- Consider sending a formal letter of demand before commencing proceedings
- Assess whether urgent relief is needed to prevent further harm
Conclusion
A Deed of Release is not just a piece of paper – it is a legal commitment. When the other party breaches it, the law provides meaningful remedies to protect you. With the right guidance of Top deed of release lawyers Perth you can enforce your rights and recover what you owed.
