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

Question

Quizplus · Accepted Answer

Ann agreed to release Bob from further liability in exchange for $2,500. This means that Ann cannot collect any further damages from Bob, even if her damages ultimately exceed $2,500. By accepting the payment and releasing Bob from further liability, Ann forfeited her right to pursue any additional claims against Bob arising from the accident.

Ann Is Injured in an Accident Caused by Bob