Cherry is injured in an accident caused by Bronco.Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability.Cherry agrees.If Cherry's damages ultimately exceed $2,500,she can
A)collect the balance from Bronco in a breach-of-contract suit.
B)collect the balance from Bronco in a tort suit.
C)collect the balance from Bronco on the ground of unforeseen events.
D)not collect the balance from Bronco.

Question

Quizplus · Accepted Answer

Cherry cannot collect the balance from Bronco, as she has already released him from further liability by agreeing to accept the $2,500 payment. This is known as a release of claims or a settlement agreement. Once a release is signed, it typically prevents the injured party from pursuing any further legal action against the party who caused the injury.

Cherry Is Injured in an Accident Caused by Bronco