Contracts, Transfer, and Escrow Practice Question

Question

An investor is comparing two properties involving assignment. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 52)

Answer choices

1. A. It applies only to commercial property and never to residential transactions.
2. B. It is controlled only by local custom rather than by law, contract, or professional duty.
3. C. It is valid only when the buyer pays cash and no lender is involved.
4. 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

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