Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later,Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 12-5. The agreement between Dex and Carmen is

Question

Quizplus · Accepted Answer

The agreement between Dex and Carmen is a release. A release is a contract in which one party agrees to relinquish their right to pursue legal action against another party in exchange for some sort of consideration, typically money. Carmen agreed not to pursue her legal claim against Dex in exchange for $2,000. This means she cannot later seek damages for the auto accident. Therefore, the fact that later she discovers the repair cost of her car and medical expenses does not matter because the release she signed already settled any legal claim.

Dex and Carmen Are in an Auto Accident