Contracts, Transfer, and Escrow Practice Question
Question
A broker is supervising a transaction file involving contract formation. Which statement is the most accurate exam answer? (Item 41)
Answer choices
- A. Identify offer, acceptance, consideration, capacity, and lawful objective.
- B. It prevents any later disclosure, even when new facts become known.
- C. It applies only to commercial property and never to residential transactions.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
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