Molly and Craig Are the Original Parties to a Contract

question 43

Multiple Choice

Molly and Craig are the original parties to a contract.Craig is obligated to design a Website for Molly.They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract.The agreement releases Craig from his obligations under the contract.This agreement is

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

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Definitions:

Risk-Free Asset

An investment with zero default risk, typically government bonds, providing a basis for comparing with riskier assets.

Beta

A method for appraising the degree of variation, or consistent peril, of a security or investment pool versus the market at large.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a given period.

Market Return

The total return on investment in the stock market, comprising capital gains and dividends, over a specific period.