Contracts, Transfer, and Escrow Practice Question
Question
A license applicant is studying a California practice scenario involving specific performance. What should a California real estate licensee understand? (Item 130)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. Identify an equitable remedy compelling performance of a contract.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
B. Identify an equitable remedy compelling performance of a contract.
Explanation
The correct answer is B because specific performance requires candidates to identify an equitable remedy compelling performance of a contract. 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: hard
- Domain: Contracts, Transfer, and Escrow
- Objective: specific performance