That a legal duty arises when there is a contractual agreement with the client is called ________.

Question

Quizplus · Accepted Answer

The principle of privity of contract means that a legal duty arises between parties that have entered into a contractual agreement. Therefore, choice B is the correct answer. A is incorrect because standard of care refers to the level of skill and care expected of a professional. C is incorrect because professionalism is a broader concept that encompasses ethical behavior and adherence to professional standards. D is incorrect because independence refers to the auditor's ability to perform their work without bias or influence from the client.

That a Legal Duty Arises When There Is a Contractual