Contracts, Transfer, and Escrow Practice Question

Question

A listing agent notices a potential compliance issue involving counteroffer. Which statement is the most accurate exam answer? (Item 47)

Answer choices

1. A. It prevents any later disclosure, even when new facts become known.
2. B. It applies only to commercial property and never to residential transactions.
3. C. Identify that a counteroffer rejects the original offer and proposes new terms.
4. D. It is controlled only by local custom rather than by law, contract, or professional duty.

Correct Answer

C. Identify that a counteroffer rejects the original offer and proposes new terms.

Explanation

The correct answer is C because counteroffer requires candidates to identify that a counteroffer rejects the original offer and proposes new terms. 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: counteroffer

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