A covenant not to sue is the substitution of a contractual obligation for a legal action.

Question

Quizplus · Accepted Answer

A covenant not to sue is a legally binding agreement between two parties in which one party agrees not to file a lawsuit against the other party. In exchange for this promise, the other party usually agrees to fulfill certain conditions, such as paying a sum of money or fulfilling contractual obligations. This substitution of a contractual obligation for a legal action is what makes a covenant not to sue different from a release or waiver, which simply releases one party from liability for any harm caused to the other party.

A Covenant Not to Sue Is the Substitution of a Contractual