What does the term "release" mean in contractual agreements?

In the context of contractual agreements, the term "release" specifically refers to a situation in which one party provides permission to another party to not fulfill their contractual obligations. This generally means that one party, referred to as the releasor, relinquishes their right to enforce the terms of the contract against the other party, known as the releasee. By releasing the releasee from their obligations, the releasor acknowledges that the other party does not need to complete their promises under the contract.

This concept is vital in contract law as it can help parties avoid the need for performance under the contract or prevent disputes that may arise from non-performance. The release can either be mutual or unilateral, but ultimately, it signifies the agreement that the promised action or obligation will not be enforced.