Contracts, Transfer, and Escrow Practice Question
Question
A license applicant is studying a California practice scenario involving contingencies. Which statement best describes contingencies? (Item 168)
Answer choices
- A. It is optional whenever both parties verbally agree to proceed.
- B. It allows a salesperson to act independently of the responsible broker.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- D. Identify conditions that must be satisfied or waived for performance to continue.
Correct Answer
D. Identify conditions that must be satisfied or waived for performance to continue.
Explanation
The correct answer is D because contingencies requires candidates to identify conditions that must be satisfied or waived for performance to continue. 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: medium
- Domain: Contracts, Transfer, and Escrow
- Objective: contingencies