Contracts, Transfer, and Escrow Practice Question
Question
An investor is comparing two properties involving contract formation. Which statement is the most accurate exam answer? (Item 61)
Answer choices
- A. Identify offer, acceptance, consideration, capacity, and lawful objective.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
A. Identify offer, acceptance, consideration, capacity, and lawful objective.
Explanation
The correct answer is A because contract formation requires candidates to identify offer, acceptance, consideration, capacity, and lawful objective. 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: contract formation