The main difference between these two contracts is that people typically sign a waiver as a precaution before an incident occurs or anyone brings any claims forward. Waivers are common practice in the entertainment and tourism industry where people often participate in risk-related activities (e.g., renting a car or boat, skydiving, bungee jumping, etc.). With a signed waiver, protection from liabilities exists regardless of whether or not disputes or damages occur. In contrast, people can sign a release before or after a dispute arises. Signing a release allows one party to free another from the liabilities associated with both known and unknown claims. Still, people often use the terms waiver and release interchangeably and generally understand them to mean that one party agrees not to pursue legal action against another party.