Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This agreement is
A) a covenant not to sue.
B) an accord and satisfaction.
C) unliquidated.
D) a release.

Question

Quizplus · Accepted Answer

This agreement is a covenant not to sue because Twyla agrees not to sue Ulric if he pays for the damage. If he fails to pay, she can bring an action for breach of contract. A covenant not to sue is an agreement not to sue in exchange for something of value, like payment for damages.

Twyla's Dock Is Damaged in an Accident Caused by Ulric's