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

Question

Quizplus · Accepted Answer

The situation described is a covenant not to sue, which is an agreement not to bring a lawsuit in exchange for some form of compensation or benefit. The agreement still allows for legal action if the other party fails to follow through on their end of the deal, as is the case here with Ferguson failing to pay for the damage to Edie's dock.

Edie's Dock Is Damaged in an Accident Caused by Ferguson's