Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Missouri Real Estate Salesperson Exam involving specific performance and agency and escrow compliance. Which response best applies the rule? (Item 102)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize a court order requiring contract performance in appropriate cases in a way that fits Missouri exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Recognize a court order requiring contract performance in appropriate cases in a way that fits Missouri exam practice.
Explanation
The correct answer is B because specific performance requires candidates to recognize a court order requiring contract performance in appropriate cases. The Missouri 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: specific performance