Contracts, Transfer, and Escrow Practice Question
Question
A salesperson is explaining a concept to a client involving contract formation. Which statement is the most accurate exam answer? (Item 21)
Answer choices
- A. Identify offer, acceptance, consideration, capacity, and lawful objective.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
A. Identify offer, acceptance, consideration, capacity, and lawful objective.
Explanation
The correct answer is A because contract formation requires candidates to identify offer, acceptance, consideration, capacity, and lawful objective. 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: contract formation