Roy and Sheila Are Parties to a Contract

question 26

Multiple Choice

Roy and Sheila are parties to a contract. They subse?quently agree that Tony should take Roy's place and assume all of his rights and duties under the contract. This is

• A) a novation.
• B) an accord and satisfaction.
• C) an assignment.
• D) a modification.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, showing the value of all goods and services produced over a specific time period in real, inflation-adjusted terms.

Classical Theory

A school of economic thought that emphasizes the role of free markets in regulating the economy and argues for minimal government intervention.

Employment

The condition of having paid work, or the process or business of hiring workers.

Savings

The portion of income not spent on current consumption, often set aside for future use or investment.