Covenant Not to Sue

Are you settling a claim out of court? Protect yourself against future legal action with this Covenant Not to Sue.

• This form would be used when a settlement is reached between two parties through the payment of a cash amount in a damages claim for an accident, breach of contract, etc.
• In return for the settlement amount paid by the covenantee (the person making the payment), the covenantor (person signing the covenant) agrees never to sue the covenantee.
• This Covenant extends only to the circumstance which gave rise to the claim, and the covenantor does not give up its rights to sue any other party with respect to the same circumstance.
• The covenantor acknowledges that payment by the covenantee was made as a compromise and does not constitute an admission of liability on the part of the covenantee.

Always get it in writing. Before paying over the cash amount, get this Covenant Not to Sue signed by the covenantor.