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The tutorial explains the importance of understanding termination and release agreements in transactions. A termination form is an optional, unilateral notification document used to indicate that one party is terminating a transaction. It's advised not to use this form without a fully executed release agreement, as it typically leads to disputes, with the receiving party likely involving their attorney to address unmet contract items, possibly resulting in litigation. In contrast, a release agreement is more comprehensive and addresses the terms under which both parties agree to terminate the transaction, mitigating potential disputes. Understanding both documents is crucial for successful transaction management.