Which of the following describes liability that arises by assumption under a contract?

Liability that arises by assumption under a contract is best described by a contractual agreement. In this context, contractual liability occurs when one party agrees to take on certain responsibilities or obligations as part of a contract with another party. This can include promises to perform certain services, deliver goods, or assume responsibility for certain risks or harms that may arise in connection with those services or goods.

When parties enter into a contract, they often detail the duties and expectations of each party, and liability can be established based on these terms. If one party fails to fulfill their contractual obligations, they may be liable for the resulting damages to the other party.

Other choices such as negligence, direct injury, or statutory liability do not specifically refer to the assumption of liability through a contract. Negligence typically involves a failure to exercise reasonable care rather than a contractual obligation. Direct injury relates to harm caused directly by someone's actions without the nuances of contractual terms, and statutory liability arises from obligations imposed by law rather than through mutual agreement between parties. Therefore, the definition of liability by assumption under a contract aligns specifically with the concept of a contractual agreement.