Ralph CoEnters into an Agreement to Sell 500 Computers to Buyer

question 94

Multiple Choice

Ralph Co.enters into an agreement to sell 500 computers to Buyer.Ralph decides that it cannot fulfill its contract,so it transfers all its rights and duties under the contract to George Co.

• A)The contract is unenforceable because this type of contract cannot be assigned.
• B)This is an assignment.
• C)This is a delegation.
• D)This is an assignment and a delegation.
• E)This is a novation.

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Definitions:

Commission Rate

The percentage or fixed fee that agents, brokers, or service providers earn as a reward for their sales efforts or services rendered.

Sale Probability

The likelihood or chance that a product or service will be purchased within a given timeframe.

Shirk

The act of avoiding or neglecting one's duties or responsibilities.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often seen in insurance and finance.