Contracts, Transfer, and Escrow Practice Question
Question
An investor is comparing two properties involving counteroffer. Which statement is the most accurate exam answer? (Item 147)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. It can be ignored if the transaction is expected to close quickly.
- C. Identify that a counteroffer rejects the original offer and proposes new terms.
- D. It requires the licensee to favor the other party over the licensee’s own client.
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