It is always a bad idea to try to settle a car accident privately, as the person may come back several times for more money, if no "release" was signed. Report the accident to the insurance company, and let them resolve.
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You are telling us about an episode of 'The Flintstones' right? The origins of the insurance industry in our nation date back to our founding fathers who were concerned about allocating and sharing the risks of loss. Today, the reason that we have insurance is to adjust losses and move forward.
Certainly your neighbor has auto insurance and taking care of matters like this is the reason. If your neighbor does not have auto insurance for some reason, then she should take the money she has saved, and save some more by retaining an attorney to stop the extortion and put an end to this. The claim is not over until a release is signed.
See the article linked below about releases.
Law Offices of Andrew D. Myers, North Andover, MA & Derry, NH provide answers for informational purposes only. Actual legal advice can only be given by an attorney licensed in your jurisdiction, thoroughly familiar with the area of the law in which your concern lies. This creates no attorney-client relationship.
There doesn't seem to be any documented agreement of a settlement based on the provided information.
satisfaction is a settlement of an unliquidated debt. A contract is said to come into existence when acceptance of an offer (agreement to the terms in it) has been communicated to the offeror by the offeree and there has been consideration bargained-for induced by promises or a promise and performance.
An oral contract is a contract the terms of which have been agreed by spoken communication, in contrast to a written contract, where the contract is a written document. There may be written, or other physical evidence, of an oral contract – for example where the parties write down what they have agreed – but the contract itself is not a written one.
In general, oral contracts are just as valid as written ones, but some jurisdictions either require a contract to be in writing in certain circumstances (for example where real property is being conveyed, or that a contract be evidenced in writing (though it may be oral).
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