Lewis Held a Lease to Land in the Countryside

question 12

Multiple Choice

Lewis held a lease to land in the countryside.Because he works in the city and seldom has a chance to visit the countryside, he assigned his interest to his sister, Carol.Unfortunately, times were tight for Carol, and after four months, she failed to pay the rent.The landlord has demanded relief from Lewis.In this situation, Lewis

• A)must pay the landlord because he is liable for his assignee's actions.
• B)must pay the landlord because Carol is related to him by blood.
• C)is not required to pay anything to the landlord because an assignment requires the assignee to absolutely take over all of the assignor's rights and obligations.
• D)cannot be compelled to pay the landlord unless and until Carol has been in default of her obligations for at least six months.
• E)must choose between signing a new lease or paying assignment damages.

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Definitions:

Trade

The exchange of goods and services between people or entities, either within an economy or between economies.

Comparative Advantage

The competence of any individual, firm, or national economy to generate a good or perform a service with a lower sacrifice in alternative opportunities compared to others in the market.

Increasing Costs

A situation in which the costs of production increase as the total output increases, often due to factors like labor and material shortages.

Specialization

The practice of focusing on a specific area or activity to achieve greater efficiency and productivity.