business law essay question

Accounting Firm With Access to Client’s Bank Account is Sued For Embezzlement of Funds. Client Settles Case with Accounting Firm For $100,000. In the Release, There is a Covenant Not to Sue:

“Client Agrees Not to Institute a Legal Action of Any Kind With Respect to an Officer, Director or Employee of Accounting Firm.”

Why is a covenant not to sue part of the settlement agreement in the release? Why is This Provision Important to the Accounting Firm?

In your answer, consider the consequences of the inclusion and the exclusion of this covenant not to sue in the overall settlement. Concise analytical discussion of your reasoning is required

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