Forbearance to sue Clause Samples
A Forbearance to Sue clause establishes that one party agrees to temporarily refrain from initiating legal action against another party, typically in exchange for certain promises or actions. In practice, this clause might be used when a creditor agrees not to sue a debtor for a specified period if the debtor makes partial payments or fulfills other conditions. The core function of this clause is to provide a structured opportunity for dispute resolution or compliance without immediate litigation, thereby offering both parties time to negotiate or remedy issues while avoiding the costs and adversarial nature of a lawsuit.
Forbearance to sue. A promise to refrain from suing on a claim is consideration ONLY IF (any element)
i) Claim is valid
ii) Claim is invalid AND (any element)
1) Doubtful because of uncertainty to the facts or the law
2) The claim has a reasonable basis for support (objective) AND is made by the claimant in good faith (bona fide / subjectively) and not frivolous, vexatious, or unlawful Fiege v ▇▇▇▇▇ (Promise to forbear bastardy proceedings in exchange for paying child support by putative father upheld as sufficient consideration because made in good faith) Restatement 2nd § 74