Which of the Following Is True with Regard to the Law

question 143

Multiple Choice

Which of the following is true with regard to the law of contracts?

• A) Assignments are modifications of the privity of contract rule, since they do allow a one person to take over the obligations of another.
• B) An employee sent by his employer to do a routine job for one of the employer's customers is in a contractual relationship with the customer.
• C) The assignor for value of a negotiable instrument may acquire better rights than the assignee has.
• D) A statutory assignment is easier to enforce than an equitable assignment.
• E) A party to a contract for services can assign both his contractual obligations and his contractual rights.

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Definitions:

Current Liabilities

Short-term financial obligations that are due to be paid within one fiscal year or the operating cycle, whichever is longer.

Non-current Liabilities

Non-current liabilities are obligations a company owes that are not expected to be paid within the next twelve months, including long-term loans, bond payables, and deferred tax liabilities.

Current Assets

Resources anticipated to be turned into cash, disposed of, or used up either within a year or over the course of the operating cycle, depending on which period extends further.