need explanation on this paragraph (cp 13)

13-3b Release A release is a contract in which one party forfeits the right to pursue a legal claim against the other party. It bars any further recovery beyond the terms stated in the release. A release will generally be binding ifit meets the following requirements: 1. The agreement is made in good faith [honestly]. 2. The release contract is in a signed writing [required in many states]. 3. The contract is accompanied by consideration. '* Clearly, an individual is better off knowing the extent ofhis or her injuries or damages before signing a release. Example 13.9 Lupe's car is damaged in an automobile accident caused by Dexter's negligence. Dexter offers to give her $3,000 if she will release him from further liability resulting from the accident. Lupe agrees and signs the release. If Lupe later discovers that it will cost $4,200 to repair her car, she normally cannot recover the additional amount from Dexter: Lupe is limited to the $3,000 specified in the release. Lupe and Dexter voluntarily agreed to the terms in the release, which was in a signed writing, and sufficient consideration was present. The consideration was the legal right Lupe forfeited to sue to recover damages, should they be more than $3,000, in exchange for Dexter's promise to give her $3,000