Question

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. The covenant is _________.a. a bar to recovery only if Guardian Security pays. b. an illusory contract. c. barred by the preexisting duty rule. d. barred by the doctrine of promissory estoppel.

Answer 1

a.

Step-by-step explanation:

Based on the information provided within the question it can be said that the he covenant is a bar to recovery only if Guardian Security pays. Meaning that it is a way of getting off from being sued, but if they do not abide by the terms of the covenant and pay for the damages to Heidi's car then a jury would find contributory negligence and Gaurdian Security would not have a defense.