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If someone is at fault in a car accident and paid cash on scene but still exchanged info how liable are they?

Las Vegas, NV |

My neighbor got into a car accident, her fault, and the other driver said she would take $700 not to go through insurance. They agreed on $100 and a bass audio speaker, I was there to see the goods exchange. Can the other driver still go after my neighbor for the full amt of the claim? Or is it irrelevant because she settled to take money and goods from my neighbor? What things can happen in this not very well planned out situation? I'm pretty sure my neighbor gave her car insurance info anyway? Not too clear on that..

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Attorney answers 4


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.

Mike Walker


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).

The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between Howard Roitman, Esq. and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

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