If Performance Under a Contract Will Vary Materially on a Delegation

question 29

Multiple Choice

If performance under a contract will vary materially on a delegation of its duties to a third party from that expected by the obligee, the delegation is

• A)prohibited.
• B)permitted on sufficient notice by the obligor.
• C)permitted if the performance does not require the obligor's personal skill.
• D)permitted if special trust has been place in the obligor.

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Definitions:

Presales Costs

Expenses incurred during the preliminary phase of a sales process, such as market research, product development, and pitch preparation, before actual sales begin.

Cost Of Goods Sold

The immediate expenses linked to the creation of products sold by a business, such as materials and labor.

Financial Report

A formal record of the financial activities and position of a business, person, or other entity, typically prepared on a quarterly or annual basis.

Competition-Led Pricing

A pricing strategy that matches prices to other businesses selling the same or very similar products and services.