Contracts, Transfer, and Escrow Practice Question
Question
A license applicant is studying a California practice scenario involving assignment. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 92)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. Distinguish transferring contractual rights from delegating duties.
Correct Answer
D. Distinguish transferring contractual rights from delegating duties.
Explanation
The correct answer is D because assignment requires candidates to distinguish transferring contractual rights from delegating duties. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Contracts, Transfer, and Escrow
- Objective: assignment