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 is
A) a covenant not to sue.
B) an illusory promise.
C) an unforeseen difficulty.
D) a release.

Question

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 is
A) ​a covenant not to sue.
B) ​an illusory promise.
C) ​an unforeseen difficulty.
D) ​a release.

Quizplus · Accepted Answer

This is a covenant not to sue, which is an agreement not to sue in exchange for a promise or consideration. This differs from a release, which extinguishes the right to sue altogether. An illusory promise is one that does not bind the promisor to do anything, and unforeseen difficulty does not apply to this situation.

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