Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can
A)recover the balance for lack of consideration.
B)recover the balance because the consideration was past.
C)recover the balance due to unforeseen events.
D)not recover the balance.

Question

Quizplus · Accepted Answer

Molly cannot recover the balance because when she agreed to accept the $25,000 from Luc in exchange for releasing him from further liability, she entered into a binding settlement agreement. This agreement legally prevents her from seeking additional compensation beyond the agreed amount, regardless of whether her damages exceed that amount.

Molly's Motorcycle Is Damaged in an Accident Caused by Luc's