Fact Pattern 11-5 Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 11-5.The agreement between Dex and Carmen is
A) a covenant not to sue.
B) an illusory promise.
C) a release.
D) promissory estoppel.

Question

Fact Pattern 11-5 Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 11-5.The agreement between Dex and Carmen is​ 
A) ​a covenant not to sue. 
B) ​an illusory promise. 
C) ​a release. 
D) ​promissory estoppel.

Quizplus · Accepted Answer

The agreement between Dex and Carmen is a release. A release is a contract in which one party forfeits the right to pursue a legal claim against another party. Carmen received $2,000 in exchange for giving up her potential legal claim against Dex.

Fact Pattern 11-5 Dex and Carmen Are in an Auto Accident