Bill Contracts with Judy to Wash Her Car and Then

question 24

Multiple Choice

Bill contracts with Judy to wash her car and then delegates the duty to Paul.Paul fails to wash the car.Which of the following is true regarding Bill's duty to Judy,if any?

• A)Bill has no duty to Judy so long as she did not expressly object to the delegation.
• B)Bill has no duty to Judy,regardless of whether she objected to the delegation.
• C)Bill continues to be contractually bound to Judy to ensure that her car gets washed.
• D)Bill continues to be contractually bound to Judy to ensure that her car gets washed,but only if the contract expressly prohibited delegation.
• E)Bill continues to be contractually bound to Judy to ensure that her car gets washed,unless he already paid Paul for the job.

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Definitions:

Expiration

The end of the life of a financial instrument or contract, after which it ceases to be valid.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Expiration

The date on which a derivative contract such as an option or futures contract becomes void and the right to exercise it no longer exists.

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same asset in different markets without taking on any risk.