Texas General Lines Property and Casualty (P&C) Agent Practice Exam

Duty of care is a legally enforceable obligation that can arise from sources like statute and regulation, or from court decisions that define what constitutes reasonable care in specific situations. When a law imposes a standard, that creates a duty by law. When a court interprets a case and sets precedent, it creates or clarifies a duty through common-law reasoning. Contracts can also create a duty to act with care as part of the agreement, but the existence and scope of a duty can come from either legal statutes or judicial decisions, which is why the answer that combines both sources is the best choice.