Molly and Craig Are the Original Parties to a Contract

question 43

Multiple Choice

Molly and Craig are the original parties to a contract.Craig is obligated to design a Website for Molly.They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract.The agreement releases Craig from his obligations under the contract.This agreement is

• A)a novation.
• B)an accord and satisfaction.
• C)an assignment.
• D)a nullification.

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Definitions:

Nonexclusion

A characteristic of certain goods where it is difficult or impossible to exclude individuals from using the good, often leading to issues with free riders.

Free-rider Problem

A situation where individuals benefit from resources or services without paying for their use, leading to under-provision or depletion of resources.

Nonrival Goods

Goods whose consumption by one individual does not reduce availability to others, such as public parks or broadcast television.

Pay-per-view Television

A type of television service by which subscribers can purchase events to view via private telecast.