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While courts typically frown upon adhesiontype (i.e., take it or leave it) contracts where the weaker party is unrepresented and asked to give up certain rights they would otherwise have without fully understanding the consequences, No Sue Agreements have been found to be enforceable by various courts in a variety of
The covenant not to execute is a promise by the plaintiff not to seek further damages from the insured. Insurance claim lawsuits involve three main parties: the insured, the insurer, and the claimant.In this case, the insured and claimant may agree to limit the judgment so that the claimant can go after the insurer.
California law doesn't permit covenants not so sue if it is to exempt someone from fraud, willful injury or violation of the law. The court determined that that wasn't the case here. consultation over a two-year period, militates against a conclusion that the covenant not to sue is procedurally unconscionable.