After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car. This covenant is
A)a bar to recovery if Guardian Security pays.
B)anaccord and satisfaction.
C)barred by the preexisting duty rule.
D)barred by the doctrine of promissory estoppel.

Question

Quizplus · Accepted Answer

The covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to Heidi's car is a valid agreement. If Guardian Security pays, then it acts as consideration for the covenant not to sue. This means that if Guardian Security does pay, Heidi is barred from recovering damages from them in a tort action.

After an Accident with a Vehicle Licensed to Guardian Security