Contracts, Transfer, and Escrow Practice Question

Question

An escrow officer requests clarification from the broker involving valid contract. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 83)

Answer choices

1. A. It is optional whenever both parties verbally agree to proceed.
2. B. It allows a salesperson to act independently of the responsible broker.
3. C. Distinguish valid, void, voidable, and unenforceable agreements.
4. D. It shifts all responsibility to escrow and eliminates the broker’s duties.

Correct Answer

C. Distinguish valid, void, voidable, and unenforceable agreements.

Explanation

The correct answer is C because valid contract requires candidates to distinguish valid, void, voidable, and unenforceable agreements. 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: valid contract

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