Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Michigan Real Estate Salesperson Exam involving breach and agency and trust-money compliance. Which response best applies the rule? (Item 101)
Answer choices
- A. Identify nonperformance and available contractual remedies in a way that fits Michigan exam practice.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
A. Identify nonperformance and available contractual remedies in a way that fits Michigan exam practice.
Explanation
The correct answer is A because breach requires candidates to identify nonperformance and available contractual remedies. The Michigan 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: breach