Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Indiana Real Estate Broker Exam involving breach and broker affiliation and supervision. Which answer best reduces risk? (Item 83)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. Identify nonperformance and available contractual remedies in a way that fits Indiana exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Identify nonperformance and available contractual remedies in a way that fits Indiana exam practice.
Explanation
The correct answer is C because breach requires candidates to identify nonperformance and available contractual remedies. The Indiana reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Contracts, Finance, and Transfer
- Objective: breach