A(n)_____ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.
A) exculpatory agreement
B) subcontract
C) unilateral contract
D) option contract

Question

Quizplus · Accepted Answer

A subcontract is a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform. The other options do not fit the definition provided in the question. An exculpatory agreement is an agreement in which one party agrees to release another party from liability for certain occurrences. A unilateral contract is a contract in which only one party is obligated to perform. An option contract gives the holder the right to buy or sell an asset at a predetermined price at some point in the future.

A(n)_____ Is a Type of Contract by Which a New