Contracts, Transfer, and Escrow Practice Question
Question
A listing agent notices a potential compliance issue involving rescission. Which statement best describes rescission? (Item 171)
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. Recognize cancellation that returns parties to their pre-contract positions.
- D. It shifts all responsibility to escrow and eliminates the broker’s duties.
Correct Answer
C. Recognize cancellation that returns parties to their pre-contract positions.
Explanation
The correct answer is C because rescission requires candidates to recognize cancellation that returns parties to their pre-contract positions. 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: rescission