When the Performance of a Contract Depends on the Personal

question 21

True/False

When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.

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Definitions:

Avoidable Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product line.

Irrelevant Costs

Costs that will not be affected by a decision and therefore should not be considered when making that decision.

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits.

Original Cost

The initial price paid or cost of acquisition of an asset, before any depreciation, amortization, or impairment costs are deducted.