We are given the definition of a contract: "A contract, whether expressed or unexpressed, exists when two parties engage with each other for the reciprocal transfer of benefits." The key word here is RECIPROCAL. This means that the terms bind each party equally. The situation described is that an artist is accepting support from public funds. The stimulus then applies this situation to the definition of a contract for the reciprocal transfer of benefits.
However, the interaction here between the artist and the public might not be reciprocal, so the situation might not apply. With the artist accepting public funds, only one party has engaged with the other for a transfer of benefits. That means that it only partially applies to the definition of a contract for the reciprocal transfer of benefits.
Therefore, answer choice (B) is describing how the stimulus is concluding that the definition of a contract for the reciprocal transfer of benefits is fully applicable to the situation of artists accepting support from public funds when it is known only that the situation conforms partially to the definition of "a contract" because this situation might not be reciprocal.
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