Dag and Enita are in an auto accident. Dag offers Enita $2,000 if she promises not to pursue her potential legal claim against him. Enita agrees. Later, Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury.
-Refer to Fact Pattern 11-5.The agreement between Dag and Enita is

Question

Quizplus · Accepted Answer

The agreement between Dag and Enita is a release. A release is a contract where one party agrees to give up their right to pursue legal action against the other in exchange for some form of consideration. In this case, Enita agreed not to pursue her legal claim against Dag in exchange for $2,000.

Dag and Enita Are in an Auto Accident