Which of the Following Duties Can Probably Be Delegated

question 27

Multiple Choice

Which of the following duties can probably be delegated?

• A)An agreement to perform an operation
• B)A contract to paint a picture
• C)An agreement by an attorney to draft a contract
• D)An agreement to paint a house

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Definitions:

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in a contract, often seen in insurance markets.

Insurance

A financial product that provides compensation for specific losses or damages in exchange for regular payments, known as premiums.

Insured Risk

A risk that has been covered by an insurance policy, transferring the financial burden of a potential loss from the insured to the insurer.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, leading to an imbalance in the decision-making process.