Cookie and Muhammad Created a Contract

question 35

Multiple Choice

Cookie and Muhammad created a contract.Muhammad promised to pay $25 000 to Cookie; Cookie promised to install a modified engine in Muhammad's speedboat.Jane vicariously performed part of the contract.Which of the following statements is most likely to be TRUE?

• A)Jane almost certainly vicariously performed on behalf of Cookie.
• B)One of the parties undoubtedly breached the contract.
• C)Vicarious performance occurs only under an assignment.
• D)Vicarious performance will be recognized by a court of equity but not by a court of law.
• E)If Jane performed carelessly, and if the party that received Jane's services suffered a loss as a result, that party is entitled to sue Jane, but not the other contractual party.

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Definitions:

Six-Month

Relating to or denoting a period or term of six months, often used in the context of time-specific agreements or conditions.

Debentures

A type of debt instrument not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.

Unsecured Debt

Unsecured debt refers to loans or credits not backed by collateral, meaning the lender relies on the borrower's promise to pay back the debt.

Securities

Financial instruments that represent ownership positions, debts, or rights to ownership, such as stocks, bonds, and options.