A covenant not to sue is an agreement to substitute a contractual obligation for a legal action.

Name: A covenant not to sue is an agreement to substitute a contractual obligation for a legal action.
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A covenant not to sue is a contract between parties where one party agrees not to sue the other party for certain claims or issues in exchange for some benefit or consideration. This agreement essentially substitutes a contractual obligation for a legal action.

A Covenant Not to Sue Is an Agreement to Substitute