Lana Agrees to Work as Michelle's Personal Assistant for One

question 54

Multiple Choice

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate

• A) ​is discharged from any contractual liability.
• B) ​must find a competent assistant to fulfill the contract.
• C) ​must pay damages.
• D) ​must refund any money paid to Lana on the contract.

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Definitions:

Higher Rate

A term that generally indicates a rate (of interest, tax, etc.) that is above the normal or average level.

Capital Goods

Long-term assets that are used in the production of other goods and services, such as buildings, machinery, and equipment, which are not consumed in the production process.

Borrows

refers to the act of obtaining money, goods, or services in exchange for a promise of future repayment.

Financial System

A network of institutions, markets, instruments, and mechanisms that facilitate the exchange of funds and the allocation of resources in an economy.