If a Person Pays a Consideration to a Claimant for the Claimant's

question 5

Essay

If a person pays a consideration to a claimant for the claimant's covenant not to sue, what exposure does the settling person continue to have?

---

Definitions:

Payroll Period

The interval of time for which an employee's wages are calculated, such as weekly, bi-weekly, or monthly.

Salaries Payable

An account that represents the amounts owed but not yet paid to employees for services rendered.

Payroll Register

A comprehensive record detailing the amounts paid to employees for services rendered during a specific period.

Net Pay

The actual amount of money an employee takes home after deductions such as taxes and retirement contributions are subtracted from the gross income.