Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Massachusetts Real Estate Salesperson Exam involving breach and broker-salesperson supervision. Which response best applies the rule? (Item 191)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Identify nonperformance and available contractual remedies in a way that fits Massachusetts exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Identify nonperformance and available contractual remedies in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because breach requires candidates to identify nonperformance and available contractual remedies. The Massachusetts 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