Q&A: Is a contract enforceable when one party agrees not to sue another for breach of existing contracts?

Question by jonathan a: Is a contract enforceable when one party agrees not to sue another for breach of existing contracts?
Is a contract enforceable (i.e. is there consideration) when one party (in good faith or in bad faith) agrees not to initiate litigation (or not to sue) against the other party for an alleged breach of an existing contract between the parties.

If anyone can point to a site that specifically mentions this or a case where this was resolved, it would be much appreciated.

Best answer:

Answer by coragryph
Yes — a promise not to sue is generally considered valid consideration for that party so agreeing — of course, the other party also needs to provide consideration.

As for the case citation — that would obviously depend on your country and state/province.

What do you think? Answer below!