Which of the following contracts is considered self-enforcing?
A)An assurance provided by a lawyer to his/her client to win a case.
B)A futures contract purchased through a NYSE broker.
C)An agreement between two oligopolists to follow uniform pricing strategy.
D)An agreement between two students to share assignment responsibility.

Question

Quizplus · Accepted Answer

A futures contract purchased through a NYSE broker is considered self-enforcing because it is a standardized contract that is traded on a regulated exchange. This means that the terms of the contract are clear and well-defined, and that there is a mechanism in place to enforce the contract if one party breaches it.

Which of the Following Contracts Is Considered Self-Enforcing